Financial Times FT.com

The Short View

By John Authers

Published: December 4 2007 02:00 | Last updated: December 4 2007 02:00

Across the world, currency pegs are under pressure. This may sound like the wave of crises that hit emerging markets in the 1990s, but there is a critical difference: back then the pegged currencies wanted to fall, now they are straining to appreciate.

This helps explain the excitement generated on foreign exchange markets by the meeting of the Gulf Co-operation Council, ending today. Investors are betting it will stop pegging its currencies to the dollar.

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