Thailand’s central bank has activated measures to curb the baht’s rapid appreciation, which has surged over 8% year-to-date, pressuring exports and tourism. Korea’s National Pension Service (NPS) is deploying flexible forex hedging tactics to support the won, which has depreciated more than 9% in the second half of the year, nearing psychological lows. Market expectations are mounting for a Thai rate cut this week, while Korean authorities coordinate emergency meetings to treat currency weakness as a systemic risk. These actions signal a broader currency war dynamic in Asia, where divergent monetary policies and capital flows are forcing central banks into defensive postures. International investors must recalibrate risk assessments for Chinese equities and regional assets, as forex volatility could impact trade-dependent economies and investment returns.
Currency Wars Erupt: Thailand and Korea Launch Emergency Forex Interventions to Stabilize Volatile Markets
