While no goverment has verified the claims, traders in the region suspect several Asian banks have “softly” invervened in favor of the US dollar to protect their exports from being hit by an appreciating home currency. The Japanese Finance Minister Fujii has praised the US dollar as a reserve currency in a bid to intervene via statements rather than entering the markets, after his “abnormal” quote of last week.
The interventions by South Korea, Singapore, Thailand and the Philippines — reported by currency traders, but not confirmed by the authorities — came as Asian currencies soared, with some hitting 12-month highs against the dollar and exacerbating worries about the outlook for the U.S. currency among traders.
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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