Goldman and BofA’s Asian exchange rate expectations

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Goldman Sachs strategists, in a note they shared, stated that the currencies of Malaysia, Singapore and Thailand will be positively affected by the recovery in tourism, which constitutes an important part of the country’s economy.

Strategists “The rise in commodity prices will be positive for Malaysia and Indonesia trade. The South Korean won and Taiwan dollar may underperform their counterparts due to the rapid normalization from the Fed, the expectation of a slowdown in China’s growth and permanent exits from the stock markets” made its assessment.

Thai baht and Singapore dollar outperformed Taiwan and South Korean currencies in the first quarter of the year.

Bank of America also likes the Thai baht and Malaysian ringgit, while Australia&New Zealand Banking Group’s favorites include the Singapore dollar and Indonesian rupee.

Consumption and investments are expected to recover as Asian countries open their borders after the pandemic. Rising commodity prices are expected to support exporting countries such as Indonesia and Malaysia.

The won and Taiwan dollar were the top performing currencies in Asia after Fed Administrator Lael Brainard announced yesterday that the Fed will start shrinking its balance sheet as of May.

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