No peace for emerging market currencies

BENGALURU: Most emerging market currencies will continue to struggle against the mighty dollar over the coming year as the United States Federal Reserve (Fed) finally delivers expected aggressive policy tightening, according to a Reuters poll of forex strategists.

Central banks in emerging market economies have been bracing for this for months by hiking their benchmark interest rates. But the actual moment when the Fed delivers half-point rate increases and rapid balance sheet reduction still matters.