archiveASIA

The US dollar's position as the world's primary reserve currency has endured for over eight decades, weathering numerous economic crises, geopolitical shifts, and challenges from emerging economies. Despite periodic predictions of its decline, the greenback continues to dominate international finance, trade, and central bank reserves. Understanding why this supremacy persists requires examining the complex interplay of historical, economic, and institutional factors that reinforce America's monetary hegemony.Historical foundation and the Bretton Woods LegacyThe dollar's reserve currency status originated from the 1944 Bretton Woods Agreement, which established a new international monetary system...

Some of emerging Asia’s biggest central banks look to be dialling back their interventions in the currency market.The central banks of India and Malaysia have reduced the size of some derivatives positions they use to weaken their currencies. Taiwan has allowed its currency to surge against the US dollar in recent weeks and dropped hints it would be comfortable with more if the moves were “orderly”. South Korea’s giant national pension fund has ended its five-month support of the won.A major reason for these moves is a simple change in...

(MENAFN- Asia Times) A targeted US military strike on Iranian military assets has reignited geopolitical risk in global markets, and the immediate fallout is being felt most acutely across emerging Asia. Asian currencies, equities and bonds are under renewed pressure as investors price in higher energy costs, a potential capital exodus and a delayed path to monetary easing. The Bloomberg Asia Dollar Index dropped 0.3%, its largest single-day decline in weeks. The South Korean won and Indonesian rupiah led regional currency losses, while equity markets from Manila to Seoul posted...