Bearish sentiments on most Asian currencies have intensified due to diminishing optimism about imminent US rate cuts, according to a Reuters poll released on Thursday. The safe-haven appeal of the US dollar has increased, impacting Asian currencies negatively, especially with the expectation that the US central bank may delay interest rate cuts until March. The Malaysian ringgit faced the most bearish outlook for the 11th consecutive month, while short bets on the Chinese yuan, Indonesian rupiah, South Korean won, and the Philippines peso strengthened. However, the Indian rupee defied the trend, garnering bullish bets for the first time in approximately six months. The Singapore dollar turned neutral, and short positions on the Thai baht were reduced. Thailand and the Philippines are advocating rate cuts to alleviate rising consumer price pressures. The Indian rupee has shown resilience, benefiting from the central bank’s intervention, political stability, substantial fund inflows, and the inclusion of Indian government bonds in key global indices. Analysts anticipate continued pressure on low-yielding currencies like THB and MYR in the coming months. The poll was conducted prior to the release of US inflation data on Thursday, which could impact further market sentiments.
Asian currencies face bearish sentiment amidst delayed US rate cut expectations.
