I study the impact of US monetary policy on managed exchange rates and currency peg regimes by analyzing the pricing of American Depositary Receipts (ADRs) around FOMC meetings. I identify a significant negative impact of US monetary surprises on abnormal ADR returns for currencies that are managed, which reflects changes in these currencies’ fundamental values due to US monetary policy shocks. In line with currency crises models of interest rate defence like Lahiri and Végh (2007), positive US monetary surprises increase the breakdown probability of currency pegs of countries characterized by low real GDP growth, high fiscal deficits and a weak domestic banking sector.