While no goverment has verified the claims, traders in the region suspect several Asian banks have “softly” invervened in favor of the US dollar to protect their exports from being hit by an appreciating home currency. The Japanese Finance Minister Fujii has praised the US dollar as a reserve currency in a bid to intervene via statements rather than entering the markets, after his “abnormal” quote of last week.
The interventions by South Korea, Singapore, Thailand and the Philippines — reported by currency traders, but not confirmed by the authorities — came as Asian currencies soared, with some hitting 12-month highs against the dollar and exacerbating worries about the outlook for the U.S. currency among traders.
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