Flash: Asian currencies to stay pressured - ANZ

FXstreet.com (Bali) - Despite growth in Emerging Asia is expected to improve this year, Khoon Goh, Senior FX Strategist at ANZ, does not see this as having a beneficial impact on Asian currencies.

Key Quotes

"With the US Federal Reserve embarking on a path towards policy normalisation, we see US interest rates gradually rising."

"This in turn will shift currency market’s focus away from current account deficits towards relative growth prospects and leverage."

"This is where the reality of a lower potential growth outlook for Asia lies. Alongside a rising cost of capital compounded by higher debt levels, these will be the key headwinds for Asian currencies this year."

"We look for further currency weakness in the region, with the exception of CNY, and see any dips in USD/Asia as a buying opportunity."