Re closes at record low of 50.48Continued capital outflows and stock markets sinking to new lows, have resulted in considerable downward pressure on Asian Currencies in 2009.
Most of the countries in the list are export oriented economies.
As demand from customers in the US & Europe continues to slow, producers in Asia are going to struggle.
Weak local currencies might help exporters to some extent, but that may not be enough to stimulate demand in Western Markets.
Meanwhile Gold has risen to new highs in most local currencies ( except the JPY), boosted further by weak asian currencies.
Lastly, the questions everyone should be now asking are -
How long can the Asian Export Economies continue to allow their currencies to slide vs the USD? &
Are Asian Central Banks safe in USD Treasury Bonds even as the US Government continues to bailout every entity that is too big to fail?
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