Asia: Fitch Says Emerging Asia Risks Importing Inflation Via USD Links.

Section: Business News - Emerging Asia's strong economic and sovereign-credit performance through the global financial crisis could come under pressure in the medium term from inappropriately loose monetary policy imported from advanced economies, Fitch Ratings says in a Special Report published today, with the ranking of exposures across the region indicating lower-rated sovereigns would be more at risk.

With at least nine of eleven Emerging Asian countries on some form of currency link to the USD, and the US Federal Reserve widely considered to be moving towards further quantitative easing (QE), Fitch argues countries with poorer track records of price stability, …