Selective ASEAN FX Under Pressure Amid Shifting US Rate Dynamics

ASEAN currencies are facing depreciation pressure against the USD as US rate expectations turn hawkish following the June FOMC meeting. Strategies favor USD strength against THB, MYR, and IDR while remaining defensive on SGD.

Key Takeaways

• 1.ASEAN FX (MYR, THB, IDR) is under pressure due to hawkish Fed policy and rising US yields.
• 2.Bank Indonesia is expected to raise rates to 6.25% by year-end to defend the Rupiah.
• 3.The Thai Baht is weak due to a low-yield profile and growth-prioritizing monetary policy.

Table of Contents

• Key Points
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