Asia FX Talk: Sharp Rise in Global Bond Yields Weighs on EM Asia Currencies

Global yields and oil prices have surged, driving EM Asian currencies to multi-year or record lows, with the Indian rupee hitting 96/USD. Rising US real yields and the ongoing Strait of Hormuz impasse remain the primary macro headwinds for the region.

Key Takeaways

• 1.Global government yields surged due to high oil prices, fiscal concerns in the US/UK, and the ongoing closure of the Strait of Hormuz.
• 2.EM Asia currencies, particularly the Indian rupee (INR) which hit a record low, are being squeezed by higher US real yields and elevated energy import costs.
• 3.Brent crude oil prices exceeded $110/bbl following a lack of breakthrough at the Trump-Xi summit regarding the Strait of Hormuz waterway reopening.

Table of Contents

• Market Highlights
• Ahead Today
• CERTIFICATION
• DISCLAIMERS
• Legal entities and branches
• General disclosures
• Country and region specific disclosures

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