MANILA, Philippines — Asean currencies are poised to strengthen in the coming months as weakening global headwinds and domestic policy flexibility create conditions that favor the region’s foreign exchange markets.
In a report released Monday, Maybank FX Research & Strategy said a mix of external and internal factors — including a softer US dollar, more space for monetary policy easing and progress on trade diplomacy — point to upside risks for the Indonesian rupiah (IDR), Malaysian ringgit (MYR), Thai baht (THB), and Philippine peso (PHP).
Analysts argued that despite lingering trade tensions and geopolitical uncertainty, the macroeconomic backdrop was increasingly supportive of Asean foreign exchange performance. Among the most significant drivers is the continued softness in the US dollar, which has been a key factor encouraging portfolio inflows into emerging market assets.
