Fri, Aug 23, 2013 - Page 15 News List

Asia currencies slide after Fed minutes

TENTATIVE:Although the minutes did not give a clear indication of when tapering would start, markets reacted with falls in shares, rise in yields and dollar-buying, an expert said

AFP, TOKYO and WASHINGTON

“The majority of financial market participants is currently expecting that the Federal Reserve will announce the tapering of its asset purchase program at the upcoming meeting, in mid-September,” Harm Bandholz of UniCredit said.

“At the same time, the Fed might still be a bit farther away from changing the forward guidance than I thought so far,” he added.

“The committee turned a bit more bearish on the state of the economic recovery,” economist Paul Edelstein at IHS Global Insight said. “As such, we don’t expect tapering at the September meeting.”

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