Currency Bears Beware, Asia Central Banks Are Drawing a Line

The worst may soon be over for Asia’s emerging-market currencies, which have come under pressure during the Iran war, as central banks have begun stepping up their support, having stashed away extra reserves for just such a situation.

Policymakers in Indonesia, India. the Philippines and Taiwan have all intervened in foreign-exchange markets over the past two weeks, while China signaled support for its currency by setting a stronger daily fixing. A number of other authorities have issued verbal warnings as they seek to damp volatility.