Financial Times FT.com

Plummeting dollar a big headache for pegged currencies

By Joanna Chung and Peter Garnham

Published: March 14 2008 02:00 | Last updated: March 14 2008 02:00

The collapse of the US dollar, which suffered another sharp fall yesterday, 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.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this