Home›Forex›Major Pairs›KRW and TWD lead Asia FX gains as US yields soften

KRW and TWD lead Asia FX gains as US yields soften

MUFG says August price action is increasingly selective, with gains concentrated in KRW and TWD tied to a softer US rates environment.

Reported · Written up by our desk · Major Pairs

MUFG strategist Lloyd Chan says the Korean won and the Taiwan dollar are leading gains across Asia FX, supported by softer US yields and a resilient technology cycle, according to FXStreet.

In Indonesia, the note highlights that recent Indonesian rupiah stabilization could give Bank Indonesia room to keep its policy rate at 5.75%, though it also flags risks from a weaker trade balance and tighter US dollar liquidity.

FXStreet also notes that the strongest Asia FX gains so far in August appear concentrated in currencies viewed as more exposed to a lower US rates backdrop, reflecting investors growing selectivity about where to position in the region.

More like this

Sources