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ASEAN FX outlook flags uneven growth, Malaysia inflation steady

MUFG expects Malaysia’s CPI to remain contained around 1.9% year on year while Thailand’s Q2 GDP slowdown could weigh on the baht.

Reported · Written up by our desk · EM Currencies

MUFG analysts, cited by FXStreet, highlighted a mixed set of ASEAN data points that they say could shape regional currency performance. They pointed to Singapore’s July non-oil domestic exports, noting the rebound after June’s strong 20.7% year-on-year growth.

In the view discussed by FXStreet, Malaysia’s inflation is expected to stay relatively contained, with CPI forecast at 1.9% year-on-year. The firm also expects Thailand’s second-quarter GDP to slow, which it says could reinforce cyclicality concerns and weigh on the baht.

For Indonesia, MUFG expects Bank Indonesia to keep its policy rate at 5.75% as the rupiah stabilizes, according to FXStreet’s summary of the outlook.

The brief also ties the regional FX backdrop to broader currency conditions, including commentary around the US dollar and recent market moves referenced alongside the ASEAN indicators.

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