A $6 Trillion FX Pile Is Asia’s Shield From Resurgent Dollar
- Asian currencies slumped in October amid dollar strength
- India, Thailand, Philippines rank high in reserve adequacy
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A $6.4 trillion foreign-exchange reserve pile in Asia is giving investors confidence that central banks have the ammunition to fight the dollar’s strength stemming from the US presidential election.
Asian currencies have come under pressure in October, as rising odds of a Donald Trump presidency and uncertainties over the pace of the Federal Reserve’s easing bolstered the greenback. A Bloomberg index of the region’s currencies just had its worst month since February 2023, with the Indian rupee near its weakest ever and South Korea’s won close to a three-month low.