# Fed Surprise May Herald New Era of Asian Currency Weakness - Bloomberg

> A hawkish Federal Reserve forecast showing two interest-rate increases by end-2023 pushed almost all developing Asian currencies lower against the dollar. The South Korean won fell as much as 1.5%, while the Chinese yuan, Indian rupee and Indonesian rupiah each dropped at least 0.5%.

- Date: 2021-06-17 · published 2021-06-17T12:00:00.000Z
- Category: macro · region Asia · magnitude medium
- Page: https://feedsoft.ai/events/46827-fed-surprise-may-herald-new-era-of-asian-currency-weakness-bloomberg
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A stronger dollar and weaker Asian currencies raise the local-currency cost of imported feed ingredients for Asian buyers and can weigh on Asian demand for US commodities, pressuring grain and oilseed prices in dollar terms.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2025-09-17 | [Dollar Boost From Fed to Weigh on Asian Currencies, Analysts Say - Bloomberg](https://feedsoft.ai/events/23086-dollar-boost-from-fed-to-weigh-on-asian-currencies-analysts-say-bloomberg.md) | +0.4% | +1.5% |
| DXY | 2024-05-30 | [Asian currencies: Indonesia rupiah hits weakest since early May](https://feedsoft.ai/events/30581-asian-currencies-indonesia-rupiah-hits-weakest-since-early-may.md) | +0.3% | +1.8% |
| DXY | 2018-01-31 | [Janet Yellen’s Fed Era Ends With Unanimous Vote of No Rate Hike - Bloomberg](https://feedsoft.ai/events/66889-janet-yellen-s-fed-era-ends-with-unanimous-vote-of-no-rate-hike-bloomberg.md) | +0.4% | +1.2% |
| DXY | 2016-06-24 | [U.K.’s EU Exit Roils Currencies From Australia to Russia, Mexico - Bloomberg](https://feedsoft.ai/events/6955-u-k-s-eu-exit-roils-currencies-from-australia-to-russia-mexico-bloomberg.md) | +1.7% | +2.5% |
| DXY | 2025-09-30 | [Malaysia currency outlook - FurtherAsia](https://feedsoft.ai/events/23164-malaysia-currency-outlook-furtherasia.md) | +0.1% | +0.4% |
| USDCNY | 2018-01-09 | [China Changes the Way It Manages Yuan After Currency's Jump - Bloomberg](https://feedsoft.ai/events/67197-china-changes-the-way-it-manages-yuan-after-currency-s-jump-bloomberg.md) | -0.9% | -3.3% |
| USDCNY | 2018-02-08 | [China's Yuan Toppled From Two-Year High as Trade Data Surprises - Bloomberg](https://feedsoft.ai/events/7104-china-s-yuan-toppled-from-two-year-high-as-trade-data-surprises-bloomberg.md) | +1.3% | +1.2% |
| USDCNY | 2023-01-17 | [Indian rupee weakens on yuan-led slide on Asian currencies - Markets - Business Recorder](https://feedsoft.ai/events/38053-indian-rupee-weakens-on-yuan-led-slide-on-asian-currencies-markets-business.md) | +1.3% | +1.8% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2021-06-17/emerging-asia-currencies-slump-after-hawkish-fed-surprise

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.