Asia FX: Oil, Fed Outlook Weigh on KRW, IDR – OCBC

OCBC's Sim Moh Siong highlights that sustained high oil prices combined with a more hawkish US Federal Reserve stance are creating headwinds for Asian foreign exchange markets. The Korean Won (KRW) and Indonesian Rupiah (IDR) are under particular pressure as both economies are net energy importers.

The strategist points out that the broader Asia FX complex remains sensitive to shifts in US interest rate expectations and commodity price dynamics. A firmer US policy outlook strengthens the dollar, adding to the depreciation pressures on regional currencies.

Market participants are now watching for further guidance from the Fed and oil price movements to assess the near-term trajectory for KRW and IDR.