Federal Reserve policy ... its not all about the US
This piece from Bloomberg points out how decisions taken at the FOMC impact on global markets, in this case China's yuan. It says stability of the yuan (i.e. not capital exodus from China) will be improved is the Fed keeps rates steady:
- A dovish Fed lowers the probability of a USD rally and a yuan slide, and thus no trigger for capital flight from China ... and on the other hand more hawkish and the thus supportive of the USD "could suck money out of China".
- "The Fed and China are stuck in an uncomfortable dance," said Frederic Neumann, co-head of Asian economic research at HSBC Holdings Plc. "This yin-yang of the Fed and the PBOC could thus reignite volatility down the road."
More here at the article