Financial Times FT.com

Plummeting dollar headache for pegged currencies

By Joanna Chung and Peter Garnham

Published: March 13 2008 21:09 | Last updated: March 13 2008 21:09

The collapse of the dollar, which suffered another sharp fall on Thursday, is causing growing difficulties for economies whose currencies are tied to the greenback.

A sliding dollar, whose decline has been accelerated by a series of interest rate cuts in the US, is feeding growing inflationary pressures in countries as varied as China, Saudi Arabia and Russia.

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