Asian Currency Takes a Nosedive

Continuously escalating Federal Reserve rate hikes have left Asian currency in a devastating situation. Thursday morning as investors preferred to opt for the dollar, Asian FX tumbled off the charts creating new records in the lower sphere.

Among the several, the Chinese yuan was down by 0.6%, almost reaching 7.1 against the greenback. This helped the world’s second-largest economy’s currency to create a new record low, in over two years.

While on the other hand the Japanese yen also hit a record, falling to the lowest in over two decades as it shed 0.6% trading at 145 to the dollar. So far the Japanese currency has taken the cup, being the worst performing currency for a while in the Asian region. This could partly be a result of the dovish monetary policy imposed by the Bank of Japan with easy interest rates.

Simultaneously the Korean won was also down by 0.7%. The currency hit a 15-year record low. Moreover, the Thai baht was down by 0.5%, creating a record low in 16 years.

The Indian rupee was also not far behind creating new records of low as it hit 0.6% while it traded at 80.28. The Philipines peso dwindled at 0.7% trading at 58.445 against the greenback.

It was a solemn day in the Asian region while the dollar index climbed to 111.5 hitting its highest in more than 2 decades. This increase was a result of the Fed Reserve’s rate increase of 75bps.

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