The dollar was nursing heavy losses in Asia on Friday after wild swings overnight left dealers struggling to find a pattern amid all the noise.
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As the global economic slowdown overshadows inflation as the main concern of Asian central banks, they are also working to head off a related risk — that efforts to reflate the West could send a torrent of destabilizing funds into their economies.
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Money is continuing to pour into emerging market bond funds, subduing the cost of borrowing for developing countries and underlining the shift in economic power away from the western heavyweights of the financial system. The FT reports.
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