The Fed's announcement is predicted to cause turmoil in Asian currencies

A Fed Fund Rate hike is widely expected to happen in September 2016.
Raymond Yeung, chief economist for Greater China at Australia & New Zealand Banking Group in Hong Kong, said Yellen’s comments had created volatility that would probably last at least three months.
`US funding costs will rise. Asian currencies will come under pressure,` Yeung said, according to Bloomberg on Sunday, Aug. 28, 2016.
He said that some Asian nations would be willing to shoulder capital outflows in return for a boost to their export competitiveness from weaker currencies.
`A stronger U.S. would actually help global sentiment and export-oriented economies like Singapore and the rest of Asia,` added Song Seng Wun, an economist at CIMB Private Banking in Singapore.
Goldman Sachs Group Inc. has raised the probability of a September hike to 40 percent, from 30 percent previously, according to a note from economist Jan Hatzius.
ANZ expects a tightening in December, with scope for a move in September if Yellen’s speech signals that.



Writers
: Sakina Rakhma Diah Setiawan


Editor
: Erlangga Djumena


Source
: Bloomberg,