Asian currencies slumped to their weakest in more than 19 months as traders grappled with the prospect of higher-for-longer US interest rates and the resurgent dollar.

The Bloomberg Asia Dollar Index fell 0.1% on Thursday, to the lowest since late 2022.

Asian currencies are some of the world’s worst performers, weighed by the stronger greenback and a drop in China’s yuan amid sluggishness in the world’s second-largest economy. The Bloomberg gauge has fallen more than 3% so far in 2024.

Central banks in the region are growing more vigilant about currency gyrations. India, Vietnam and Indonesia have all intervened in markets to stem the slide in their currencies.

Meanwhile, the spotlight is back what Japanese authorities will do next as the yen plunges through milestone levels in rapid succession.

  - Bloomberg