Asia forex gloom lifts slightly on dollar retreat and dovish Fed

Bengaluru

EMERGING Asian currencies are set to weaken further in the coming year, but not as much as thought a few months ago, as expectations the US Federal Reserve will raise interest rates more cautiously hold back the dollar, a Reuters poll showed.

Still, with many Asian central banks continuing to ease policy, the consensus from over 60 analysts polled by Reuters this week was for regional currencies to weaken 2-6 per cent by this time next year, with the Malaysian ringgit leading the …