The indexes typically fall as investor confidence improves and rise as it deteriorates. Credit swaps pay the buyer face value if a borrower fails to meet its obligations, less the value of the defaulted debt. A basis point equals $1,000 annually on a contract protecting $10 million of debt.
The dollar weakened against all but one of its 16 major peers as the Bloomberg Dollar Index sank to its lowest level since June 27. The euro gained for a second day, climbing 0.5% to $1.3038.
The yen strengthened 0.4% to 99.27 per dollar. South Korea’s won led gains in Asian emerging-market currencies, climbing 1.2% to 1,122.39 per dollar, the strongest level since June 10. The Bank of Korea held its benchmark seven-day repurchase rate unchanged at 2.5% for a second straight month today.
The Indian rupee was little changed at 59.68 per dollar. The central bank may impose further curbs on rupee trading by lowering lenders’ net open position limits, according to a person with knowledge of the matter, who asked not to be identified because the information is confidential. They were referring to the amount of foreign-exchange contracts that investors can hold without opposing trade covers.
Silver jumped 3.6% and gold and copper gained at least 3% to lead gains in commodities. West Texas Intermediate oil fell 0.9% to $105.59 a barrel after rising to a 15-month high of $107.45 a barrel.
The S&P GSCI gauge of 24 commodities was little changed after seven straight gains.