Dollar strength exposes cracks in Asian emerging-market debt

As coronavirus ravages, weak currencies threaten hundreds of billions in bonds

Some $1.4 trillion worth of U.S. dollar-denominated bonds are outstanding from Asian countries, with more than half of that from China, according to Dealogic. © Reuters

NARAYANAN SOMASUNDARAM, Nikkei Asian Review chief banking and financial correspondent

March 30, 2020 12:15 JST

HONG KONG -- The resilient U.S. dollar and the resulting weakness in emerging-market currencies amid the coronavirus pandemic is increasing the risk of default on Asian companies' corporate debt, potentially triggering a wider credit crisis.