Indonesia’s central bank, which has a mandate for currency stability, stepped in to steady the sliding rupiah on Tuesday and analysts are mulling whether it may be forced to hike rates as soon as next week.
The rupiah on Wednesday hit its lowest since the peak of pandemic pandemonium in markets in March 2020.
India’s rupee hit a record low on Tuesday. Vietnam’s dong is at record lows and free-falling.
Malaysia, Japan and South Korea have warned they stand ready to intervene – so far keeping those currencies from some landmark chart levels.
Outside Japan, the prospect of rate cuts in Asia this year is evaporating. Inside Japan, rises in yields have not kept pace with the selling in the U.S. Treasury market, widening the 10-year rates gap to more than 380 basis points.
Later in the day, British inflation is due and base effects are seen encouraging a decline in the pace of core and headline price rises. Final euro zone inflation figures are also due, though they will likely track the preliminary data.
