Home›Forex›Major Pairs›Yen strength seen lifting KRW, THB, SGD and PHP in Asi…

Yen strength seen lifting KRW, THB, SGD and PHP in Asia FX

MUFG links the potential outperformance to these currencies having higher sensitivity to USD/JPY, while the Yen-linked correlation for CNH, TWD and INR has eased since 2025.

Reported · Written up by our desk · Major Pairs

FXStreet reported that MUFG expects the Japanese Yen’s strength to make South Korean won, Thai baht, Singapore dollar, and to a smaller extent Philippine peso the main Asian FX beneficiaries, citing their higher sensitivity to USD/JPY moves.

MUFG also said correlations and conditional beta to Yen moves have fallen for Chinese yuan, Taiwan dollar, and Indian rupee since 2025, implying the Yen transmission is less consistent for those markets than it was before.

In a separate note on the broader backdrop, FXStreet said robust Asia purchasing managers index data point to strong export momentum, with growth expected to slow into 2027 but remain elevated.

FXStreet also referenced wider market context in its coverage, including mentions that the US Dollar has been weighed by hopes for a diplomatic solution to the Middle East crisis and by weaker June US JOLTS figures.

Latest closeUSD/JPY 157.38 ▼1.8%

More like this

Sources