SEOUL: Higher United States interest rates or a sharp rise in the dollar could pose challenges to East Asia’s local-currency bond markets, the Asian Development Bank warned yesterday. While the markets have shown themselves to be resilient, the lender said in its quarterly Asia Bond Monitor that their composition left them vulnerable to external influences. “Higher US rates and a stronger dollar could prove a challenge, given increased foreign holdings of Asia’s bonds, which could easily reverse, and record US dollar bond issuance by the region’s companies,” said Iwan Azis, the head of ADB’s Office of Regional Economic Integration. AFP
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