In Asia, US dollar’s growing strength gives rise to stability concerns, suspected rate intervention

With the US Federal Reserve poised to keep borrowing rates higher for longer – a move that would maintain pressure on Asian currencies – analysts expect that China’s central bank is likely to let the yuan weaken while also being mindful of capital outflows and trade conflicts.

As widely expected, the US Fed on Wednesday left its interest rate target range unchanged at 5.25 to 5.50 per cent, with chairman Jerome Powell reaffirming the need for more evidence of inflation cooling before the next policy move.

Source: TRADE FINANCE