Ringgit in for a rough ride

Pressure on currencies: A lot will depend on the tone of the language used by Yellen during the federal open market committee meeting. If the Fed signals that it is worried about inflation and the rising wages of the US payroll market, there could be further hikes. – AFP

IT is almost certain that the US Federal Reserve (Fed) will raise interest rates again when it meets next week. The rate hike, if it happens, will be the third since December 2015.

The Fed meets eight times a year. And every time it meets, there is pressure on the currencies of emerging markets because a rate hike will have the effect of accentuating the outflow of funds back to the United States.