Back
27 Mar 2015
Further easing in Asia? – ANZ
FXStreet (Barcelona) - The ANZ Team comments on the Asian FX performance, and further predicts China, Indonesia, India and Singapore to see more easing.
Key Quotes
“Looking ahead, we can expect continued volatility in USD/Asia as the market reacts to the US economic data and adjusts its expectations over the timing of Fed lift-off.”
“Volatility aside, we note a wide spectrum of performance among Asian currencies, with some Southeast Asian currencies (MYR, IDR, SGD) being the worst performers, while the INR remains one of the best currencies in the region.”
“Monetary easing has contributed to the poor performance of the IDR, SGD, and CNY. The INR is the only currency which has benefited from interest rate cuts via a positive impact on portfolio flows.”
“Monetary easing in Asia is not over yet. Our economists expect another 25bp cut in China (alongside 100bps of RRR cuts) and 50bps in Indonesia and India. We also expect Singapore to ease policy further in the April meeting.”
Key Quotes
“Looking ahead, we can expect continued volatility in USD/Asia as the market reacts to the US economic data and adjusts its expectations over the timing of Fed lift-off.”
“Volatility aside, we note a wide spectrum of performance among Asian currencies, with some Southeast Asian currencies (MYR, IDR, SGD) being the worst performers, while the INR remains one of the best currencies in the region.”
“Monetary easing has contributed to the poor performance of the IDR, SGD, and CNY. The INR is the only currency which has benefited from interest rate cuts via a positive impact on portfolio flows.”
“Monetary easing in Asia is not over yet. Our economists expect another 25bp cut in China (alongside 100bps of RRR cuts) and 50bps in Indonesia and India. We also expect Singapore to ease policy further in the April meeting.”