Asian currencies suffered their worst day in months Thursday as the dollar index soared to 20-year highs following hawkish Fed comments. The Japanese yen breached 155 per dollar for the first time since 1990, while emerging market currencies saw even steeper declines.
Currency Moves:
- Yen weakens past 155 (down 1.8%)
- Korean won hits 13-year low
- Indonesian rupiah at pandemic-era levels
- Chinese yuan relatively stable with PBOC support
“This is turning into a perfect storm for Asian currencies,” warned Standard Chartered’s FX strategist. The moves threaten to import inflation across the region and may force central banks to intervene, just as many were hoping to ease policy.
