US Fed surprise may herald new era of Asian currency weakness

Almost all developing Asian currencies were lower against the greenback after Fed released forecasts that showed officials anticipate two interest-rate increases by end of 2023, sooner than thought.

A hawkish surprise from the Federal Reserve is exacerbating declines in emerging Asia currencies, potentially heralding a longer bout of weakness.

Almost all developing Asian currencies were lower against the greenback after the Fed released forecasts that showed officials anticipate two interest-rate increases by the end of 2023, sooner than many thought. The South Korean won fell as much as 1.5% to pace declines in the region while the Chinese yuan, Indian rupee and Indonesian rupiah each dropped at least 0.5%.

The losses could mark the start of a new era of declines in emerging Asian exchange-rates, which have already fallen this