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Currency analysts are focused on the U.S. consumer price index for April due Wednesday after the previous month’s data caused the yen to tumble. (Source photos by Hiroshi Tamehiro and Akira Kodaka)
Asian monetary officials seek to buy time until the U.S. economy slows down
LISA KIM, Nikkei staff writerMay 13, 2024 06:00 JST | Japan
TOKYO — Asian governments are increasingly taking action to stop the fall of their currencies that have been battered this year by the mighty U.S. dollar.
The strength of the American economy and its higher-for-longer rates have translated to weaker Asian currencies. Asian policymakers are responding to the dollar’s strength in varying degrees, from issuing verbal warnings to raising interest rates. Some are even believed to have intervened by buying their local currency — a tricky move that could dent a central bank’s credibility.
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