Morning Bid: Asia’s FX doom loops

The dollar’s ‘wrecking ball’ status is being painfully felt in Asia, where several currencies have sunk to multi-year or record lows, and central banks have intervened to try and stop the rot. Central banks will find it hard to break this doom loop. Their pool of FX reserves for intervention purposes is also limited – even the Bank of Japan will be aware its $1.3 trillion stash won’t last forever if it follows last week’s historic dollar-selling intervention often enough.

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