Financial Times FT.com

Asian currencies feel dollar's strain

By Peter Garnham

Published: December 3 2007 02:00 | Last updated: December 3 2007 02:00

The recent slide in the dollar has made life difficult for Asian countries that peg or tightly manage their currencies against the greenback.

Maintaining their links to the dollar as the Federal Reserve cuts US interest rates could exacerbate increasing inflationary pressures and lead to serious economic and social problems.

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