Reported 9 months ago
The yen-to-dollar exchange rate hit its lowest level in 38 years on June 27 at 160.88 yen, indicating a strong dollar and a depreciation trend in major Asian currencies in June, sparking concerns about an Asian currency depreciation war. Market observers are closely monitoring the People's Bank of China's active adjustment of the renminbi's midpoint price to prevent widespread Asian currency depreciation. Other Asian currencies have declined in June, with the yen leading the depreciation. The Renminbi continues to weaken, with the offshore rate dropping below 7.3 yuan, showing no signs of short-term convergence in the depreciation trend. The New Taiwan Dollar has remained resilient compared to other Asian currencies, with the Central Bank's cautious intervention preventing excessive depreciation. Observers suggest that a full Asian currency depreciation is a response to the overall economic situation, mainly driven by the strong US dollar, and the Renminbi's approach towards depreciation will be essential in determining the potential for an Asian currency depreciation war.
Source: YAHOO