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Volatility Sets In for Currencies as Fed Leaves Traders Hanging

  • `A new era' for currency swings seen as Fed delays rate rise
  • Actions of China, global central banks may add to volatility
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What the Fed's Decision Means for Stocks

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Foreign-exchange volatility, already the highest in four years, looks set for an extended stay after the Federal Reserve rattled markets last week by not raising interest rates.

With the central bank leaving the question of when it will move hanging over markets, its focus on economic data and international circumstances means every report will stir more volatility, according to Morgan Stanley. Fed Chair Janet Yellen says she’s monitoring risks from China, while policy makers in Europe and Japan weigh further stimulus as the Fed looks to raise rates for the first time since 2006.