In years gone by the market paid scant attention to what happens in Korea (1997 apart of course) but now we are seeing much more space in the mainstream press associated with emerging Asian markets. The FT is reporting that Korean authorities are looking to take measures to reduce volatility (read speculation) and Bloomberg is suggesting that a permanaent currency-swap arrangement is being touted. I don’t expect this to have any major impact on the JPY crosses, at least until traders get their heads around what it means.
More permanent foreign currency swap arrangements, like China introduced with Brazil and others last year, would reduce the role of the USD over time.