Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Politics

Asian FX rally? Poll reveals growing bullishness driven by weaker dollar

admin by admin
May 1, 2025
in Politics
0
Asian FX rally? Poll reveals growing bullishness driven by weaker dollar
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

Investor sentiment towards most Asian currencies has turned increasingly positive, with market participants ramping up bullish positions as the US dollar continues to grapple with pressure stemming from uncertainty surrounding President Donald Trump’s trade policies, a Reuters poll revealed Thursday.

The fortnightly survey, encompassing the views of 10 analysts and fund managers, showed a clear trend towards increased optimism for regional currencies.

Respondents significantly increased their long positions – bets that the currency will appreciate against the US dollar – on the Singapore dollar, the Indian rupee, the Thai baht, and the Philippine peso.

Furthermore, a notable shift occurred as investors turned bullish on the South Korean won, the Taiwan dollar, and the Malaysian ringgit for the first time since October last year.

This growing confidence reflects the dollar’s recent struggles; the US currency suffered its weakest monthly performance in two-and-a-half years during April, primarily due to tariff tensions sparking fears of a global economic slowdown and consequently denting the appeal of US assets.

Dollar stabilizes tentatively, but undercurrent remains

While the greenback has shown some signs of stabilization more recently, partly aided by tentative indications of progress in broader trade negotiations (including with China, the target of the highest US levies), the underlying pressure persists.

Parisha Saimbi, an EM Asia FXLM strategist at BNP Paribas, acknowledged the recent stability but highlighted the potential for continued support for Asian currencies.

“With risk sentiment stabilizing on tentative signs of a U.S.-China de-escalation and the bond-vigilant US administration helping to curtail a UST sell-off, Asian currencies could be somewhat supported tactically,” she commented.

Philippine peso leads gains

Among the regional currencies, bullish bets on the Philippine peso reached their highest level since mid-September. The peso enjoyed a strong April, gaining 2.6% against the dollar.

Analysts at Barclays suggested this strength stems partly from a market narrative perceiving the Philippines as relatively more insulated from direct tariff threats compared to some neighbors, facing comparatively modest 17% levies.

Conversely, while analysts trimmed their bearish (short) positions slightly on the Chinese yuan and the Indonesian rupiah, sentiment towards the rupiah remained firmly negative overall.

The Indonesian currency has been under pressure since March due to concerns regarding the country’s fiscal health and specific government policies.

Its sharp fall to a record low in early April prompted intervention from Bank Indonesia (BI) to support the currency, including holding policy rates steady last week to promote stability.

Despite the rupiah’s recent weakness, BNP Paribas’ Saimbi sees potential for a turnaround.

“Valuations are attractive to turn tactically long on the rupiah now,” she suggested, adding that there is “scope for some portfolio inflows if risk sentiment stabilizes,” potentially allowing the rupiah to catch up with its regional peers.

The latest results clearly indicate a growing preference among market participants for holding Asian currencies over the US dollar.

The post Asian FX rally? Poll reveals growing bullishness driven by weaker dollar appeared first on Invezz

Previous Post

Is Robinhood luring high-net-worth clients from Schwab and IBKR?

Next Post

Why the Starbucks CEO still backs SBUX stock despite earnings slump

admin

admin

Next Post
Why the Starbucks CEO still backs SBUX stock despite earnings slump

Why the Starbucks CEO still backs SBUX stock despite earnings slump

Trending News

Futures muted before shortened Christmas Eve trading

Futures muted before shortened Christmas Eve trading

December 24, 2024
Europe needs more transmission capacity for clean energy, warns Vattenfall CEO

Europe needs more transmission capacity for clean energy, warns Vattenfall CEO

February 6, 2025
Bank of England cuts rates but sees higher inflation after Reeves’ budget

Bank of England cuts rates but sees higher inflation after Reeves’ budget

November 7, 2024
Subscribe to Insightful Word


    Recent News

    How Octopus Energy is betting on AI to drive global expansion via Kraken platform

    How Octopus Energy is betting on AI to drive global expansion via Kraken platform

    May 23, 2025
    Miningcoop launches AI cloud mining system: best legal Bitcoin platform of 2025

    Miningcoop launches AI cloud mining system: best legal Bitcoin platform of 2025

    May 23, 2025
    Trump threatens Apple with 25% tariffs over foreign iPhone production; shares fall

    Trump threatens Apple with 25% tariffs over foreign iPhone production; shares fall

    May 23, 2025
    European stocks fall as Trump proposes 50% tariff on EU imports; says talks with them ‘going nowhere’

    European stocks fall as Trump proposes 50% tariff on EU imports; says talks with them ‘going nowhere’

    May 23, 2025

    Recent News

    How Octopus Energy is betting on AI to drive global expansion via Kraken platform

    How Octopus Energy is betting on AI to drive global expansion via Kraken platform

    May 23, 2025
    Miningcoop launches AI cloud mining system: best legal Bitcoin platform of 2025

    Miningcoop launches AI cloud mining system: best legal Bitcoin platform of 2025

    May 23, 2025

    Latest News

    • How Octopus Energy is betting on AI to drive global expansion via Kraken platform
    • Miningcoop launches AI cloud mining system: best legal Bitcoin platform of 2025
    • Trump threatens Apple with 25% tariffs over foreign iPhone production; shares fall

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.