The dollar rose to its highest level in more than two years and global stocks fell on Thursday after the US Federal Reserve jolted markets by signalling a slower pace of interest rate cuts next year.
Asian currencies including the Chinese renminbi and Japanese yen fell sharply against the dollar, with South Korea’s won sinking to a 15-year low. The region’s benchmark equities indices opened down after a sharp slide in Wall Street stocks the previous day.
Futures contracts suggested Europe was poised to follow Asia and the US lower, with contracts tracking the FTSE 100 down more than 1.1 per cent and those for the Euro Stoxx 50 down 1.6 per cent.