Asian Central Banks Intervene to Support Currencies as Yen Jumps, Rupee Falls 6% YTD

According to Jin10, Asian central banks intervened this week to support their currencies. Japan’s Ministry of Finance declined to comment on yen support efforts, but sources revealed that Japan has been buying yen in recent weeks. Indonesia’s central bank stated it is committed to conducting “prudent interventions” in markets to defend the Indonesian rupiah. Traders indicated India’s central bank may have also intervened to curb the rupee’s decline.

The Indian rupee is the worst performer among emerging Asian currencies this year, having fallen over 6% year-to-date. The Thai baht has similarly underperformed, declining over 3%, as energy price shocks and fiscal concerns have intensified downward pressure.