Barclays sees pause in Fed rate hikes in first half of next year

Speaking to CNBC-TV18 Mitul Kotecha, Head of Fx Strategy, Asia Pacific at Barclays said that risks are skewed towards a higher dollar. The change in the US Fed tone will give dollar more upside. “We think Fed may not hike rates until September and December. We think we may see a little bit of pause in the first half of next year.”

He also spoke about the pressure on renminbi. “We will see more pressure on renminbi. A part of it reflects the dollar strength. I don’t think we will see the same global impact seen in January or August last year. We will see a weakness but not shock.”Watch video for more...