It was like people had been starving for dollars. Many businessmen wanted to make sure they had enough greenbacks to service their foreign-denominated debt and pay for imports. Others may simply have given up on their own currency. People are buying dollars at any price. No banker in his right mind wants to extend loans to Asia.
Central banks seem helpless.
Malaysia's Bank Negara tried to keep the ringgit below 4 to the dollar, but gave up. At one point Jan. 7, the currency fell to 4.90 to the greenback. The rupiah may be the most vulnerable. The ringgit is the other vulnerable currency. In a sign of some confidence, Filipinos converted their hoarded dollars for pesos last week.