Skip to content

Crisis Level Risks Loom in Asia as Major Currencies Crack

  • Heavyweights yen, yuan both tumble as Fed hikes boost dollar
  • Rapid slide creates deadweight for other Asia currencies: BNY
Bloomberg business news
HSBC Sees Dollar-Yuan Reaching 7.20, Strategist Says
Updated on

Asian markets risk a reprise of crisis-level stress as two of the region’s most important currencies crumble under the onslaught of relentless dollar strength.

The yuan and yen are both tumbling due to the growing disparity between an uber-hawkish Federal Reserve and dovish policy makers in China and Japan. While other Asian nations are digging deep into foreign-exchange reserves to mitigate the dollar’s damage, the yuan and yen’s slump is making things worse for everyone, threatening the region’s mantle as a preferred destination for risk investors.