Currency Roadblock Seen by Top Asia Forecaster as Tariffs Loom
- Korean won likely to be worst performer in 2019, Westpac says
- Malaysian ringgit seen resilient relative to regional peers
This article is for subscribers only.
The mini trade deal reached between China and the U.S. earlier this month won’t be enough to sustain the rebound in Asian currencies from a 10-year low, according to the region’s top forecaster.
“The tariffs are a big hindrance,” said Frances Cheung, the Singapore-based head of Asian macro strategy at Westpac Banking Corp., which has topped Bloomberg’s ranking for Asia ex-Japan currencies for four straight quarters. “The China stance has always been that some tariffs have to be done away in order for them to sign a deal. But Trump is using these tariffs as a bargaining chip.”