Asian currencies were likely to face further pressure if the Fed signals additional tightening after a widely expected rate hike at its September meeting, OCBC said. The Wall Street Journal Markets reported that market participants are closely watching the Federal Reserve’s next moves for clues on future interest rate policy. Any indication of continued tightening could weigh on emerging market currencies across Asia.

OCBC highlighted that the Fed’s forward guidance will be a critical determinant of near-term FX trends in the region.