Asian FX Falls Thrust lower by Fed Rate Hike

Asian currencies have been sliding downwards and reached a record low on Wednesday. The continued hike in borrowing costs by the Federal Reserve has influenced Asian FX to slump over.

The U.S Treasury yields and the dollar are expected to continue to stay afloat based on speculations of another 75bps interest rate hike. Though several still bet on a full percentage rate hike, the Fed Reserve will conclude its two-day meeting later this day, which will clear up uncertainty.

As a result of this the dollar index today traded at 110.490 barely touching the 20 year high. The interest rate in the U.S will end the year above 4% higher than what was seen in 2008’s financial crisis.

In regard to Asian FX, the worst performing currency, the Japanese yen was traded below 0.16% going at 143.48 against the dollar. Moreover, the Indian rupee wasn’t performing well either on Wednesday trading lower at 80 against the dollar. Both currencies almost set new records in the lower sphere.

In the meanwhile, the second largest economy’s currency also fell to a two year low. Yuan was trading today at a 0.4% low as Europe announced the improbability of China becoming an investment destination based on the recurring COVID-19 crisis.

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