S-E Asia continues to feel the heat from US dollar’s hot streak
SOUTH-east Asian currencies have been feeling the burn as the US dollar continues its winning streak since mid-July – the greenback’s longest such run in nearly a decade – on the back of the US Federal Reserve’s “higher for longer” interest rate policy and increasing Treasury yields.
On Oct 23, the benchmark 10-year yield breached 5 per cent, rising to its highest level since 2007. As the US dollar and assets appear to be more attractive to global investors, the demand for the US dollar has increased in tandem.
The US dollar index, which measures its value against a basket of six major currencies – the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc – has gone up by about 5 per cent since July.
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