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Goldman Sees Emerging-Asia Currencies Coming Under More Pressure

  • Peso, rupee and rupiah may face pressure versus dollar
  • FX pressure may pose upside risk to bank’s USD-cross forecasts
An employee handles Indonesian 50,000 rupiah banknotes at a currency exchange in Jakarta.
An employee handles Indonesian 50,000 rupiah banknotes at a currency exchange in Jakarta.Photographer: Dimas Ardian/Bloomberg

High-yielding emerging-Asia currencies may continue to reel amid deteriorating external finances and risk-off sentiment spurred by Federal Reserve tightening, according to strategists at Goldman Sachs Group Inc. 

“Along with the broader emerging market currency complex, high-yielding currencies like the Philippine peso, Indian rupee and Indonesian rupiah have been under pressure in June,” strategists including Zach Pandl and Danny Suwanapruti wrote in a research note. “In coming weeks, we expect this pressure to continue versus the dollar, in some cases potentially posing upside risks to our dollar-cross forecasts.”