# Strong US Dollar Has Southeast Asia Central Banks Defending FX With New Tools - Bloomberg

> Southeast Asian central banks are defending their currencies against the strong US dollar using tools other than rate hikes. Indonesia is tightening liquidity by selling bills, and Malaysia's interbank rate has risen to its highest since July.

- Date: 2023-09-28 · published 2023-09-28T12:00:00.000Z
- Category: macro · region Southeast Asia · magnitude low
- Page: https://feedsoft.ai/events/34423-strong-us-dollar-has-southeast-asia-central-banks-defending-fx-with-new-tools
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md), [Indonesian Rupiah (IDR per USD)](https://feedsoft.ai/c/USDIDR.md)

## Why it matters

A stronger dollar and higher-for-longer Fed rates raise the cost of dollar-denominated feed imports for Southeast Asian buyers and pressure local currencies, which can weigh on import demand for feed ingredients.

## Read by commodity

- DXY: bullish ▲
- USDIDR: bullish ▲
- USDMYR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-04-25 | [Central bankers in Southeast Asia are closely watching the Fed as a strong dollar pummels their currencies \| Fortune](https://feedsoft.ai/events/31053-central-bankers-in-southeast-asia-are-closely-watching-the-fed-as-a-strong.md) | +0.1% | -1.1% |
| DXY | 2022-12-16 | [U.S. dollar gains as risk tolerance drops with hawkish central banks \| Reuters](https://feedsoft.ai/events/38416-u-s-dollar-gains-as-risk-tolerance-drops-with-hawkish-central-banks-reuters.md) | -0.3% | -2.7% |
| DXY | 2018-08-15 | [Colombia's central bank calm after US dollar hits COP3000 mark - Colombia News](https://feedsoft.ai/events/63804-colombia-s-central-bank-calm-after-us-dollar-hits-cop3000-mark-colombia-news.md) | -0.7% | -0.4% |
| DXY | 2020-04-03 | [Is there a dollar funding squeeze in China? - Central Banking](https://feedsoft.ai/events/53879-is-there-a-dollar-funding-squeeze-in-china-central-banking.md) | -0.9% | -1.0% |
| DXY | 2021-10-13 | [From Turkey to South Korea, strong dollar squeezes the energy-poor - Nikkei Asia](https://feedsoft.ai/events/44800-from-turkey-to-south-korea-strong-dollar-squeezes-the-energy-poor-nikkei-asia.md) | -1.0% | -0.9% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2023-09-28/dollar-surge-is-bringing-pseudo-tightening-to-southeast-asia

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.