Strong US dollar may push Asian currencies, monetary policies into a tight corner

SINGAPORE - After sweating for nearly two years over the perceived threat of a recession in the world’s largest economy, investors and policymakers worldwide are now trying to decipher what problems a resilient United States economy may present.

The US central bank last Wednesday not only

left its benchmark interest rates at a 22-year high,

but also doubled its expectation for 2023 gross domestic product (GDP) growth, boosting annual output to 2.1 per cent from an earlier projection of 1 per cent in June.