Halister News

(Bloomberg) -- Asian currencies are facing downward pressure as rising U.S. long-term rates mean a strong dollar and diminish the appeal of the region’s bonds, FPG Securities CEO Koji Fukaya says.

• “It’s not Asian currency weakness, it’s the dollar strength amid rising U.S. yields on growing speculation about Trump’s reflationary policies,” Fukaya says
  • “U.S. yields have risen sharply, which would change the flow of capital and will probably continue to boost the dollar”
• EM nations that have large dollar debt may see more downward pressure
• Authorities are likely to intervene in the markets to slow the pace of decline, but they can’t change the direction: Fukaya
• Thailand’s baht hits one-month low of 35.478 per dollar after record fund outflow from bonds on Nov. 11; South Korea’s won reaches weakest level since June 28 while Malaysia’s ringgit slumps 0.9%; Indonesia’s rupiah now down 0.5%
• Related story: Treasury bears approaching 1-year pivot point