Fed Forces Asia To Choose: Accept Weaker Currencies or Push Back.

Central banks in Asia are facing a challenging decision following the Federal Reserve's hawkish stance, which has led to a sharp decline in Asian currencies. Some central banks, like Indonesia's, are intervening to defend their currencies, while others, like the Reserve Bank of India, are taking more subtle approaches. The dollar rally has complicated monetary easing efforts in Asia, with weaker currencies potentially fueling domestic inflation. Despite this, central banks are likely to maintain their easing bias while navigating the impact of dollar strength. [Extracted from the article]