Fed to Pressure Asian FX With Yen in Focus, Strategists Say

The US Federal Reserve’s first interest-rate increase since 2023 and its signal of an additional hike later this year turn the spotlight on other central banks, including the Bank of Japan, set to review monetary policies.

US Fed Raises Rates for First Time Since 2023 | Stocks Slide as Inflation Stays Stubborn | Details

(Bloomberg) -- The US Federal Reserve’s first interest-rate increase since 2023 and its signal of an additional hike later this year turn the spotlight on other central banks, including the Bank of Japan, set to review monetary policies.

A stronger dollar and persistent inflation pressure from elevated oil prices are weighing on most emerging-market currencies, leaving policymakers little room to maneuver, according to market strategists.

Read: Fed Raises Rates to Curb Inflation, Drawing Rebuke From Trump

Here is what market strategists said about the Fed rate hike:

ACCM Prime (Glenn Yin)

AT Global Markets (Nick Twidale)

KCM Trade (Tim Waterer)

Apostle Funds Management (Joe Unwin)