South Korea,Indonesia,Malaysia,and Thailand all pegged their currencies to the dollar at one point in time.Because some of these currencies were overvalued at the pegged rate,speculators anticipated these countries would abandon the peg and speculators began selling those currencies.Explain how this speculation would affect the ability of a country to maintain a pegged exchange rate.

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The Answer of South Korea,Indonesia,Malaysia,and Thailand all pegged their currencies to the dollar at one point in time.Because some of these currencies were overvalued at the pegged rate,speculators anticipated these countries would abandon the peg and speculators began selling those currencies.Explain how this speculation would affect the ability of a country to maintain a pegged exchange rate.

South Korea,Indonesia,Malaysia,and Thailand All Pegged Their Currencies to the Dollar