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Stronger dollar, oil and yields pressure Asian currencies, BNY warns

BNY said Chinese yuan looks resilient but remains under official scrutiny, while it urged investors to add to CNY hedges rather than chase recent gains.

Reported · Written up by our desk · EM Currencies

BNY, via Geoff Yu, said a stronger US dollar, higher oil prices, and rising global bond yields are pressuring Asian currencies and weighing on regional financial assets, according to FXStreet.

The note singled out the Chinese yuan as relatively resilient but said it is drawing official scrutiny, while it flagged the Indian rupee, Philippine peso, Thai baht, and South Korean won as vulnerable or stretched.

Yu also reiterated a call to increase CNY hedges, cautioning against chasing the yuan’s recent appreciation as pressures tied to the USD, oil, and yields persist.

FXStreet added that broader market conditions were reflected in currency trading moves, including AUD/USD pushing to fresh four-month highs and USD/JPY staying weak near seven-month lows amid shifting rate expectations.

Latest closeUSD/JPY 158.82 ▼0.9%

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