By James McKee
A disputed border between Cambodia and Thailand is causing growing concern for the stability of Southeast Asia. As a result the markets are fluctuating and the fallout will reach the JPY in short order. The conflict has arisen as a direct result of a flag being raised and a marker stone being laid, truly this is an unstable region to act so harshly based on such actions. Cambodia and Thailand have never been close politically but have enjoyed a relative amount of calm for many years now. Some political analysts believe that the conflict may have been orchestrated by Thailand revolutionaries who want to oust the current government.
This conflict reminds many of the recent problems in the middle east (namely Tunisia and Egypt) that have caused a hike in oil prices and instability throughout the region. Such problems in Southeast Asia could cause scarcity in a number of goods if they spread to other countries in the region. Scarcity will lead to a rise in prices and cause havoc not only in Asian markets but in western ones as well. The west is addicted to the cheap goods Asian manufacturers provide and if there is a shortage prices will surely rise.
Japan and the JPY will certainly have fluctuations if the current unrest in Cambodia and Thailand drags on much longer or intensifies. Those on the Forex currency exchange should keep a close eye on the conflict between Thailand and Cambodia to see if tensions ease. The financial markets and global economy have been suffering much as of late and as a result have put strain onto the entire world. While what has happened in Cambodia is not a direct result of such problems more are sure to come in the near future if the market does not correct itself.
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
