Fed Rate Hike Pressures Asian Currencies

The US Federal Reserve's first interest-rate increase since 2023 is putting pressure on other central banks, including the Bank of Japan, which is set to review its monetary policies.

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

Market strategists say a signal of an additional hike later this year will turn the spotlight on Asian FX markets, particularly those pegged to the yen.