Emerging central banks step in to curb currency falls

LONDON: Central bankers across emerging markets are being forced into action to stem falls in their currencies, especially after China allowed its yuan to weaken to four-year lows.

A JPMorgan index tracking 22 emerging market currencies has hit successive record lows and losses have spiralled this week, forcing currencies to fresh multi-year and record lows, Until recently, policymakers in the developing world, facing sluggish growth and shrinking exports, were relatively sanguine about currency weakness. Now however most are desperate to prevent volatile swings or excessive declines that could exacerbate capital flight and inflation.