Asian currencies hit a seven year low in November, on Donald Trump’s election and the potential for his policies to spur US inflation and bond yields. Investors who fanned out across emerging markets in recent years are now bringing their money back to America.
The steep drops, and the seeming inability of some central banks to do much about it, has led to worries of a financial crisis. Some columnists are even drawing comparisons to the currency meltdown that preceded the 1997-1998 Asian Financial Crisis (AFC).
The AFC’s impacts were dramatic. It led to the sudden collapse of President Suharto’s regime in Indonesia and triggered the 1998 Russian bond default.… Seguir leyendo »