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Strong dollar fuels concerns of ballooning Asian debt

Philippines, Indonesia, Thailand, South Korea see credit default swap rates climb

Several Asian currencies have declined by 10% or more since the end of March. (Photo by Akira Kodaka)

TOKYO -- The sharp decline of Asian currencies has sparked concerns within global financial markets over rising debt burdens among regional governments and corporate borrowers.

Asian countries are raising policy rates at a slower pace than the U.S. That, combined with deteriorating trade balances, has caused some Asian currencies to depreciate 10% or more against the dollar since the end of March.

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