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Forex pairs in this Article » USD/JPY (London) - Asian currencies have been under pressure this week as a higher demand for the US dollar drives investors out of emerging market currencies.

The dollar has seen a broad strengthening since the announcement by the Federal Reserve that it would be tapering its monthly asset purchases by USD10bn to USD75bn a month.

Thailand. Philippine and Indonesia currencies have been particularly pressurised.

Declines in the Thai Baht have been accelerated by two-month-long anti-government protests. As the protests escalate, the Thai electoral commission proposed that the country’s elections in February be postponed. The official opposition has refused to field candidates. However, in a televised address, Deputy Prime Minister Phongthep Thepkanjana rejected the electoral commission's request.

The Thai Baht has declined 6.7 percent this week to USD 0.0304 – down 0.61 percent overnight.

The Indonesian Rupiah has been the worst performing currency of the year, falling more than 20 percent against the dollar.

The South Korean Won has been one of the few to buck the trend, up 0.6 percent on the week and 0.42 percent overnight to KRW1,055.16. The won was boosted by strong business confidence data and exporters selling dollars at month and year end while there is speculation that the central bank may intervene in the face of a weakening Japanese yen.
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