Asian currencies turbocharged by dollar weakness are attaining rarely seen superlatives and triggering central bank intervention to curb excessive gains.
The Hong Kong Monetary Authority on Friday sold a record amount of local dollars to prevent its advance and protect the currency¡¯s 42-year-old peg to the greenback. Taiwan¡¯s central bank also intervened as its currency soared the most since 1988. The offshore yuan rallied to its strongest since November.
The volatility shows how an exodus from the world¡¯s reserve currency can ripple through financial markets, as President Donald Trump¡¯s shifting tariff policies fuel concern over a U.S. recession. Last week, speculative traders became more bearish on the dollar than at any time since September, in a sign of growing reluctance among investors to hold U.S. assets.
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