MUFG: Asia FX Defensive as US Rates Stay High
MUFG analyst Lloyd Chan notes broad depreciation across Asian currencies since the June FOMC meeting, driven by widening swap differentials and persistently high US rates, leading the bank to maintain a defensive stance on selective Asian FX.
MUFG’s Lloyd Chan observed that Asian currencies have broadly depreciated since the June FOMC meeting. The move is attributed to widening swap differentials and the continued elevated level of US interest rates.
The bank retains a defensive bias on selective Asian foreign exchange pairs, reflecting the persistent pressure from US rate differentials. No specific currencies or targets were mentioned in the commentary.
Source: FXStreet Forex News