MUFG: Dollar Strength Pressures Asia FX, Another Fed Hike Priced In
MUFG analyst Lloyd Chan notes persistent external pressure on Asian currencies as the US dollar and Treasury yields remain firm, with markets fully pricing another Federal Reserve rate hike.
DXY
MUFG’s Lloyd Chan says external pressures on Asian foreign exchange persist as the US dollar and Treasury yields stay elevated. Markets are fully pricing in another Federal Reserve rate hike, adding to headwinds for regional currencies.
The analysis points to diverging paths within Asia FX, where some currencies face greater strain than others. The firm dollar and rising yields continue to weigh on the outlook for the region.
Source: FXStreet Forex News