Emerging Asian stocks tumbled to multi-month lows on Thursday while currencies weakened against a strong dollar, as risk aversion prevailed after the U.S. Federal Reserve signalled a slower pace of rate cuts in the coming year.
The hawkish tilt from the Fed sent traders heavily dialling back easing expectations next year and pushed the dollar to a near two-year peak. The Indian rupee declined past 85 to the U.S. dollar for the first time, while the Malaysian ringgit retreated 0.8%.
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