For most of 2011, Asian and other emerging market currencies moved consistently higher against the dollar, but their seemingly unstoppable appreciation came to an abrupt end in September. The falls began in Asia, where the South Korean won dropped by 2.2% against the dollar on September 19, 2011, followed by the Indonesian rupiah, which fell by 1.5%.
By the same date, the Asia Dollar index, compiled by JPMorgan and Bloomberg, which tracks the region’s 10 most traded currencies (excluding the yen), had fallen 2.5% against the dollar, wiping out almost all of the gains made since the start of the year.
