USD gains pressure APAC currencies and equities
The US Dollar’s renewed strength poses a significant headwind for Asia-Pacific currencies.
A decisive break above 162 technical resistance in USD/JPY could trigger negative spillovers across APAC FX, equities, and rates.
Investors are prioritizing FX hedge management over macro data in the current environment, with the offshore yuan showing relative resilience.
The persistent foreign outflows and fragile equity sentiment add to the challenges faced by APAC currencies.