Massive foreign reserves and undervalued currencies could shield the region’s markets from a potential selloff if Fed chair Jerome Powell (pic) hints at tapering bond purchases at the Jackson Hole symposium tFriday.
SINGAPORE: South-East Asia’s bond and currency traders can afford to be less worried about a potential stimulus tapering by the Federal Reserve (Fed), with their markets better positioned to withstand external shocks this time around.
Massive foreign reserves and undervalued currencies could shield the region’s markets from a potential selloff if Fed chair Jerome Powell hints at tapering bond purchases at the Jackson Hole symposium this week.
While there’s caution, analysts aren’t expecting a repeat of the so-called 2013 taper tantrum where the Fed’s surprise announcement to unwind stimulus roiled global markets.
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