Asia Steps Up Currency Defense as Mideast Strife Roils Market.

Central banks in Asia, including Bank Indonesia and the State Bank of Vietnam, are taking measures to defend their currencies against a resurgent dollar. The recent reports of armed conflict in the Middle East have added to the challenges faced by Asian currencies. The depreciation of Asian currencies against the dollar has been driven by investor pessimism about a reduction in US borrowing costs and the strength of the US economy. The swings in currency values have prompted the Group of Seven nations to issue a statement committing to preventing disorderly moves, and China has pledged to avoid excessive volatility in the yuan. Developing economies in Asia, which rely on foreign exchange reserves to finance imports, are particularly affected by the pressure on their currencies. [Extracted from the article]