Emerging market currencies should ride out Fed tightening: SocGen

Hong Kong

EMERGING market currencies should comfortably ride out the coming Federal Reserve monetary tightening, according to Societe Generale SA.

The Fed's slow and steady approach - expectations for hikes be-yond Wednesday's widely expected 25-basis-point move seem "extraordinarily subdued" - ensures that emerging market currencies will feel little impact, and carry trades will remain a viable strategy over the coming quarter, said Jason Daw, SocGen's head of emerging market foreign exchange strategy in Singapore.