Currency intervention has become a key battleground in emerging markets, especially Asia, as the latest leg up in the dollar piles pressure on officials to act.
Malaysia’s central bank on Monday signaled that it stood ready to support the ringgit, which is hovering close to a 26-year low. In South Korea, Thailand and Poland, officials have said they are closely monitoring for currency volatility or spelled out they’ll step in if needed. Indonesia has gone a step further by selling dollars and China has repeatedly pushed back against depreciation, implying to traders that the yuan’s stability is key.
