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Federal Reserve policy casts shadow over Asian economies

12 February 2014 Last updated at 23:59 GMT

South Korea and Indonesia's central banks are scheduled to announce their interest rate decisions on Thursday. Both countries are expected to keep borrowing costs on hold.

But following recent market volatility, closer attention is being paid than usual to the region's monetary policy.

That is because Asia's economies have been affected by the US central bank's decision to reduce the size of its stimulus program known as quantitative easing.

The BBC's chief business correspondent Linda Yueh explains why the Federal Reserve's moves are being felt far beyond the shores of the US.

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