Korean Won and Taiwan Dollar outperform regional peers as lower US yields and a resilient tech cycle drive investor preference.
The Korean Won and Taiwan Dollar are leading gains in Asian foreign exchange markets, supported by softer US yields and a resilient global technology cycle. August performance shows investors favoring currencies tied to these trends, with KRW and TWD outperforming peers.
Month-to-date, several ASEAN currencies have also strengthened despite Brent crude prices hovering near $90 per barrel. Lower front-end US yields are providing partial support, though risks remain for currencies like the Thai baht and Philippine peso amid economic slowdowns and potential oil price surges.
In Indonesia, the rupiah’s recent stabilization may allow Bank Indonesia to hold its policy rate at 5.75%. However, a weakened trade balance and tight USD liquidity conditions continue to pose risks to the currency’s outlook.