Asian Currencies Face Pressure From Rising Oil Prices and Strong Dollar
Rising oil prices and a stronger dollar are placing pressure on Asian foreign-exchange reserves. The reserves were accumulated after the 1997 financial crisis.
financialpost.comRising oil prices and a stronger dollar are placing pressure on Asian foreign-exchange reserves. The reserves were accumulated after the 1997 financial crisis. Officials have not announced specific policy responses at this time.
Reserves were built up following the 1997 crisis to provide a buffer against external shocks. Current conditions are drawing on those holdings. Market participants are monitoring further movements in oil and the dollar.
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Central banks may draw down reserves to support local currencies.
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