Fundamentals remain key for Asian currencies - UBS

FXStreet (Córdoba) - Asian currencies have remained fairly resilient despite the heightened volatility in financial markets, according to the UBS analyst team.

Key Quotes

“We expect economic fundamentals to remain the key driver for Asian currencies, rather than sentiment swings from risk-on to risk-off”.

“To reflect changing fundamentals, we make several adjustments to our intra-Asia currency preferences. We maintain the INR and PHP as most preferred, but lower the CNY to neutral (from most preferred) as we believe the PBoC may resist further currency strength”.