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Asian Central Banks Step Up Forex Intervention

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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.

Wall Street Journal

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

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