The dollar’s relentless advance to a two-year high is roiling Asian currencies and pushing policymakers into action to curb losses.
From direct dollar selling to verbal intervention, authorities are deploying every tool from their armories to ward off currency threats. India and Taiwan have intervened in the market, while Japan has tried to talk up the yen. China tweaked policy parameters to slow the slide in the yuan and Hong Kong is likely to step in as its currency brushes near the lower end of its trading band reports finance.yahoo.com
“Asian central banks are becoming more concerned about weaker currencies and higher inflation,” said Mansoor Mohi-uddin, chief economist at the Bank of Singapore Ltd. He cautioned that intervention is unlikely to work while the Federal Reserve remains hawkish on interest rates.
Click here for a run-down of what Asian central banks have been saying and doing about their currencies.