Slumping Asian Currencies Face More Risk From Slowdown in China
- Manufacturing PMI may have dropped to lowest in over a year
- Thai baht is Asia’s laggard in 2021, Taiwan dollar outperforms
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From Covid risks to talk of a reduction in U.S. stimulus, there’s been no shortage of bad news for Asian currencies. An upcoming report on China’s manufacturing sector may add to the pressure.
Traders are looking to Chinese factory data for clues on the global outlook after the world’s second-largest economy slowed more sharply than expected in July. The nation’s key manufacturing gauge has fallen since April and a slide into contractionary territory could spur a rise in risk-off sentiment and hurt Asian currencies.