Options traders are the least bearish on Asian currencies versus the dollar in a year as confidence builds that China will avoid a so-called hard landing, helping lure funds as Europe’s debt crisis deepens.
East Asian nations announced Thursday they have doubled the money in a regional currency swap pact to $240 billion in an effort to shield themselves from the European debt crisis. SEE MORE
Financial crisis in Europe could escalate and along with slow recovery in the US, this year will be crucial for global economy but Asian nations must continue long term structural reforms while insulating the region against the troubles, ADB said. SEE MORE
America's economic imbalance with China has been a singular concern of policymakers for more than half a decade. Sens. Charles E. Schumer and Lindsey Graham wanted to punish China for pegging the exchange rate to the dollar in 2005 - arguing that its policy of cheapening the currency to subsidize exports was fueling a huge trade surplus that cost US jobs.SEE MORE