Feeble Dollar Benefits Asia

Summary


Asia knows all too well the power of currency markets to wreak havoc on regional economies - the upheavals of the Asian financial crisis of the late 1990s ensured that.

This time around, currency speculators are bestowing a windfall on Asia, as exports made cheaper by the weakening U.S. dollar surge, and rattling Europe, as euro-denominated exports become ever more costly, possibly imperiling fragile, export-led recoveries.

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Extract


Feeble Dollar Benefits Asia

For China, Malaysia and Hong Kong - and many other Asian countries whose currencies are more loosely linked to the greenback - a cheaper dollar is adding fuel to an already sizzling export boom.

"Overall, the strong euro means that all Asia b...

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