A surge in dollar selling across Asia is a worrying indicator for the US currency, particularly as the global leader in exports begins to reconsider the long-standing practice of channeling its substantial trade surplus into American financial assets.
The strong performance of the Taiwanese dollar on Friday and Monday has created ripples, leading to significant increases in currencies across Singapore, South Korea, Malaysia, China, and Hong Kong.
The Thai baht has also been on the rise, trading around 32.62 to the dollar on Tuesday, compared with 34.88 baht a month ago.
These actions serve as an alert for the dollar since they indicate significant capital inflows into Asia, suggesting that one of the main supports for the dollar’s strength may be weakening.
Although Tuesday offered some stabilization, after Taiwan’s currency surged by an impressive 10% over two days, the Hong Kong dollar was nearing the upper limit of its peg, while the Singapore dollar approached levels not seen in over ten years.
Provided by SyndiGate Media Inc.
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