Why you need to add these currencies to your portfolio now

SINGAPORE (Sept 22): The US Federal Reserve announced on Sept 20 that it would start reducing the size of its US$4.5 trillion ($6.1 trillion) balance sheet next month. It also stuck with its forecast to raise the federal funds rate again this year, citing healthy growth.

Following the announcement, Bloomberg’s US dollar index gained 0.5%. And a few market watchers are now betting on a reversal of the slide in the US dollar this year.

In spite of steady economic growth and improving employment data, the market has been sceptical that the Fed would raise interest rates, given that inflation has remained below its 2% target.

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