Notification: Get Real-Time News Alerts For Your Portfolio Today
Powered by
TOP SECTOR EUR STABLECOIN (0%)
TOP CRYPTO MARKET CAP $0.00T
24H VOLUME $0.00B
BTC DOMINANCE 0.0%
ETH DOMINANCE 0.0%
TOP SECTOR EUR STABLECOIN (0%)
TOP CRYPTO MARKET CAP $0.00T
24H VOLUME $0.00B
Trading Articles
Search for the latest articles on trading

Asian currencies tumble as Fed’s hawkish cut jolts market

admin
admin

admin

Full Bio

admin

Share

Asian currencies suffered significant declines as the Federal Reserve delivered a surprise hawkish rate cut, unnerving investors across the region. The Fed’s decision to trim rates by 25 basis points while signaling prolonged monetary tightening spooked markets that were expecting a more dovish stance. The Malaysian ringgit and South Korean won bore the brunt of the sell-off, each falling by more than 0.5%, as traders recalibrated their expectations for U.S. monetary policy.

The U.S. dollar surged to multi-month highs, reflecting renewed confidence in the greenback’s strength after the Fed’s announcement. Emerging markets across Asia saw heightened volatility as investors pulled out funds, favoring safer U.S. assets. Meanwhile, the yen briefly strengthened on safe-haven demand but reversed gains amid continued pressure from Japan’s own ultra-loose monetary policies.

Bond yields in the U.S. also rose sharply, putting further strain on Asian markets already grappling with tepid growth. Analysts highlighted that the Fed’s emphasis on curbing inflation has created additional headwinds for economies reliant on external funding. Investor sentiment remained fragile, with Asian equities also retreating as traders assessed the broader implications of tighter global liquidity.

Market strategists are urging caution, noting the potential for further outflows if the Fed continues its restrictive stance. While some anticipate eventual stabilization in Asian currencies, the near-term outlook appears grim as U.S. monetary policy remains the primary driver of market dynamics.

Subscribe to our Newsletter

Every week, we’ll send you the latest tips, tricks, reviews and advice on how to trade to a wealthier lifestyle

View more articles by

Related Articles

Read More
Read More
Read More
Read More
Read More
Read More

Brokers Review

No reviews found in this category.

Top Stories
GBPUSD (1)
GBP/USD trades with negative bias around 1.2425 area, US NFP report awaited
EURUSD (1)
EUR/USD weakens below 1.0400 as traders await US NFP release
NZDUSD
NZD/USD gains traction above 0.5650 ahead of US NFP release
USDINR (2)
USD/INR holds steady as traders brace for RBI rate decision
USDJPY (1)
Japanese Yen retreats against USD amid some repositioning ahead of US NFP
Stocks fluctuate as bond rally pauses ahead of volatile U.S
Stocks fluctuate as bond rally pauses ahead of volatile U.S. jobs report
Japanese household spending surges to highest level since 2022 amid wage growth
Japanese household spending surges to highest level since 2022 amid wage growth
Crude oil declines for the week as trade tariffs outweigh Iran supply risks
Crude oil declines for the week as trade tariffs outweigh Iran supply risks
Japanese yen climbs amid rate hike speculation as U.S
Japanese yen climbs amid rate hike speculation as U.S. jobs report approaches
Ethereum faces resistance near $2,817 as Pectra testnet launch nears
Ethereum faces resistance near $2,817 as Pectra testnet launch nears