SINGAPORE ¨C Asia¡¯s policymakers are taking increasingly urgent and unusual steps to shore up their economies on the front line of the global energy supply shock, with currencies falling to record lows and pressure already forcing up interest rates.
Asia buys about 80% of oil shipped through the shuttered Strait of Hormuz, and stress in foreign exchange markets is one of the clearest signs that rising fuel prices are starting to hurt growth.
Governments are in an unenviable position. The path to preserving growth is precarious ?because falling currencies can shake confidence and stoke inflation, but supporting them with higher rates means a hit for consumers and the economy¡¯s growth engine on top of ?the fuel ?shock.
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