Southeast Asian Currencies: All's Well, Everybody Back in the Pool

All the previously broken SE Asian currencies have now all flipped and are running ahead of the U.S. dollar. Only the Vietnamese Dong and the Indian Rupee are still down over the last few weeks against the dollar. Mean reversion is alive and well in currency markets: No outlier move goes unpunished.

[via Pacific Exchange Rate Service]

Comments

[Coelacanth:]

Indeed they are and it's about time. Thailand finally raised their key banking rate to 3.5% and if I'm not mistaken the Philippines did the same last night.

Much of the inflation problem is coming out of emerging Asia. If it weren't for many of them pegging their currencies to the dollar I suspect many emerging Asian countries would have already stiffened monetary policy by now.

2008 Jul 17 10:04 AM