TechFlow, April 2 - According to Jinshi Data, Barclays economists said in a report that although no Asian country appeared to manipulate its exchange rate last year, this may not prevent the U.S. from targeting Asia's foreign exchange policies.
Barclays' calculations on changes in foreign exchange reserves indicate that the dollar's weakness in February triggered dollar buying across Asia, a trend that could continue into March. The longer the dollar remains under pressure, the more inclined Asian central banks will be to intervene when trade tensions intensify, in order to prevent their currencies from strengthening.
The bank added: "In our view, the U.S. government could use currency manipulation as justification for various actions, including tariffs."
