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Economy

Southeast Asian central banks play defense against Fed tightening

Indonesia and Singapore sealed currency deal and Thailand considers a rate hike

The courtyard of Bank Indonesia, which is close to completing a currency deal with Singapore that will help stabilize its economy and financial market.   © Reuters

SINGAPORE/BANGKOK -- Southeast Asia's central banks are moving to shield their economies and financial markets from an uncertain regional outlook triggered by rising U.S. interest rates and Washington's trade war with Beijing.

After standing pat on Thursday, the Federal Reserve is widely expected to increase rates again in December as the U.S. job market goes from strength to strength. The view that the Fed will continue to gradually tighten policy sent stock markets across Asia falling.

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