For the second time in two weeks the shockwaves rippling through global markets after the U.S. election have provoked Asian central banks to step in to calm their currencies -- mindful of concerns the region might see a sequel to 2013’s so-called Taper Tantrum.
Bank Negara Malaysia Assistant Governor Adnan Zaylani said on Friday the monetary authority was intervening after the ringgit dropped to a 10-month low. Indian state-run lenders sold dollars, probably on behalf of the Reserve Bank of India, according to two Mumbai-based traders who didn’t want to be identified. Developing-nation currencies have tumbled after Donald Trump’s upset win in the U.S. presidential election on Nov. 8, as indications he will spend on domestic infrastructure revived demand for the greenback.
