Baht, rupiah vulnerable as Fed rate hike expectations rise

Gulf stocks have declined as expectations for Fed rate hikes increase following remarks from Warsh. Simultaneously, emerging-market currencies, specifically the Baht and rupiah, have become vulnerable to increased volatility. These shifts in Fed rate hike expectations are potentially impacting investment flows and economic stability across the affected regions. The market reaction reflects growing concerns over monetary policy changes, leading to downward pressure on both equity markets in the Gulf and various emerging-market currency valuations.