Dollar Surge on Trump Win Pushes Asia Into Currency Defense
- Indonesia’s central bank is ready to intervene in FX, bonds
- Chinese state-owned banks are selling dollars onshore
Some Asian authorities are already moving to guard their currencies while others are on standby, as US election-related volatility fuels a surge in the dollar that has put currencies across the region under pressure.
Bank Indonesia said it was ready to intervene in the currency, non-deliverable forwards and bond markets to smooth out any sharp swings. State-owned banks in China sold large amounts of dollars onshore to help support the yuan, according to traders. There are also signs that India’s central bank has stepped in to support the rupee. Bank of Thailand said it is closely monitoring the baht.