19 Dec 2014
Asian currencies to remain pressured - BTMU
FXStreet (Guatemala) - A collective of analysts at The Bank of Tokyo-Mitsubishi UFJ, Ltd explained that weakening growth in China combined with the sharp weakening of the yen is likely to keep downward pressure on Asian currencies.
Key Quotes:
“We do not expect the Chinese authorities to devalue the renminbi to support economic growth and/or in response to a weaker yen but acknowledge that the risks are now higher”.
“An unexpected devaluation of the renminbi would likely reinforce weakness in other Asian currencies as well”.
“The Indonesian rupiah and Indian rupee are the most vulnerable regional currencies to a tightening in external financial conditions”.
“The Malaysian ringgit will also benefit the least within the region from lower oil prices”.
Key Quotes:
“We do not expect the Chinese authorities to devalue the renminbi to support economic growth and/or in response to a weaker yen but acknowledge that the risks are now higher”.
“An unexpected devaluation of the renminbi would likely reinforce weakness in other Asian currencies as well”.
“The Indonesian rupiah and Indian rupee are the most vulnerable regional currencies to a tightening in external financial conditions”.
“The Malaysian ringgit will also benefit the least within the region from lower oil prices”.