Asia Braces for Market Volatility as Fed Starts to Taper
This article is for subscribers only.
Asian officials braced for some financial-market volatility after the Federal Reserve announced plans to reduce its monetary stimulus, with South Korea pledging to act to cool currency fluctuations if needed.
Recent movement by the South Korean won against the yen has been “relatively fast” and is “problematic,” Vice Finance Minister Choo Kyung Ho said by phone in Seoul today. Authorities won’t leave currency volatility unattended and will act preemptively if needed, he said. The tapering may result in fund outflows from Hong Kong and cause its interest rates to rise ahead of the U.S., Financial Secretary John Tsang said at a briefing today.