King Canute had it easy. Indian Finance Minister Palaniappan Chidambaram has battled currency markets for two months, trying to stem the collapse of the Indian rupee from 55 to a dollar in May to 65 this week. He has found commanding currency markets even harder than commanding the ocean waves.
Taiwan’s central bank asked 65 banks for details of their foreign-currency lending to make sure exporters and importers aren’t using the loans to speculate on the local currency, an official at the monetary authority said.
Asian nations may undertake joint measures to prevent excessive speculation in their currencies, Thai Finance Minister Korn Chatikavanij said after the U.S. embarked on a second round of quantitative easing.
Indian policy makers are urging citizens to resist buying gold and boosting scrutiny of speculative currency trades after import curbs and dollar sales failed to stem the world’s biggest currency loss.