Currency Contagion V 2.0 : Déjà vu 1997 Lurks

Asian economies are facing historic burning for their currencies and are in race to retain foreign flow to their respective lands. Chinese Yuan has fallen sharply towards its 17-month low and an important psychological level of 6.70 Vs mighty US Dollar. US is exporting its inflation to world via tightening the capital ease at home and hiking rates. Which eventually is calling its Dollar back home and hence all Asian currencies are getting stretched in order to retain Dollar at their land. China Yuan is just an example given here, it is being accompanied by several emerging Asia currencies like South Korea Won, Philippines Peso, Thai Baht, Malaysian Ringgit, which are traded at multi month low. Above them all Japanese Yen us trading at 20 year low and still struggling. Factors are being published is news papers daily like Chinese economic slack, Japan stagflation and FED’s faster tightening, these are major near term risk. Asian economies are in a race to retain foreign capital and this competitive devaluations starts- currency contagion 2.0- Deja vu of 1997 lurks.