Emerging-Asia FX may continue to reel in coming weeks – Goldman Sachs
Strategists at Goldman Sachs Group Inc provide their outlook on the high-yielding emerging-Asia currencies, citing that they are likely to remain under pressure, courtesy of worsening external finances and Fed tightening-led adverse market sentiment.
Key quotes
“Along with the broader emerging market currency complex, high-yielding currencies like the Philippine peso, Indian rupee and Indonesian rupiah have been under pressure in June,”
“In coming weeks, we expect this pressure to continue versus the dollar, in some cases potentially posing upside risks to our dollar-cross forecasts.”
“The dollar-rupiah pair could continue to see upside pressure until Bank Indonesia follows the Fed in hiking interest rates.”
“The rupee, which tested a series of record lows in recent weeks, may continue to remain under pressure against the dollar amid expectations of a $40 billion balance of payments deficit this year, compared with a surplus of $55 billion in 2021.”
Related reads
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
