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Asia's central banks face a formidable challenge: An ascendant U.S. dollar

10 January 2025
in World
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Asia's central banks face a formidable challenge: An ascendant U.S. dollar
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Central banks in Asia are facing a catch-22 in 2025 as the relentless rise in the U.S. dollar has caused Asian currencies like the Japanese yen, South Korean won, Chinese yuan, and Indian rupee to hit multi-year lows. While a weaker currency could boost exports amidst threats of tariffs from President-elect Donald Trump, central banks must consider the impact on imported inflation and avoid speculative bets on prolonged currency weakness. Since Trump’s 2024 election win, the U.S. dollar has appreciated by 5.39%, complicating policymaking for Asian central banks.

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Tags: ascendantAsia EconomyAsia039sBanksBreaking News: Marketsbusiness newsCentralCentral bankingchallengeCurrency marketsdollarDonald J. TrumpFaceFormidableMarketsU.SUS Dollar/Indian Rupee FX Spot Rate
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