Forex
Asian Markets Reel from US Interest Rate Hike
The US Federal Reserve's decision to raise interest rates for the first time since 2023 has sent shockwaves through Asian markets, causing shorter-dated sovereign bonds to decline in value.
The dollar gained its largest increase since June, while government bonds in Australia and New Zealand slipped in early trading after the yield on the two-year US note rose seven basis points to 4.74 per cent, the highest since 2024.
Fed Chair Kevin Warsh struck a hawkish tone, saying the rate increase 'removed a dose of accommodation', indicating further tightening to curb inflation.