Thursday, October 8, 2009

'Asian Central Banks Intervene as Dollar Tumbles'

SINGAPORE -- The U.S. dollar continued to tumble against most Asian currencies Thursday, prompting a wave of foreign-exchange intervention by central banks in South Korea, Taiwan, the Philippines and Thailand seeking to limit damage to their export industries.

Traders said the dollar selloff is unlikely to fade soon, given the prospect for a long period of low U.S. interest rates to support a sluggish U.S. economy and increasing signs central banks in Asia will begin tightening monetary policies in the months ahead.


It felt like there was some intervention earlier as the Dec $Index Contract managed (and still manages) to hold above the key 76 level ; whether intervention in "secondary" asian currencies did much, or even anything, to support the $index is debatable though.