Stronger Case for Fed Rate Rise Increases Volatility in Asia
- Increase may boost export competitiveness in some countries
- Currencies will be under pressure from rise: ANZ economist
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Asian currencies look set for a bumpy ride over the next three months after Federal Reserve Chair Janet Yellen said Friday that the case for an interest-rate rise has strengthened, amid growing speculation the hike could come as early as next month.
Yellen’s statement will create some volatility over the next three months, Raymond Yeung, chief economist at ANZ Banking Group in Hong Kong, said by phone. “The cost of the U.S. funding will increase, and Asian currencies will be under downward pressure.”