Trade War Panic? Singapore Dollar, BSP Cut
ASEAN Fundamental Outlook
- US Dollar soared versus emerging market currencies as US-China tensions boiled
- An escalation in trade wars may fuel panic selloff in ASEAN FX: (PHP, IDR, SGD)
- Philippine Peso eyeing BSP rate cut as Indonesian Rupiah awaits GDP report next
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US Dollar and ASEAN Week Recap
While the DXY Dollar index, which is heavily Euro based, ended last week little changed, it was a very different story against ASEAN and South Asian currencies as it appreciated – as anticipated. Arguably, it had less to do with the Federal Reserve interest rate cut, but rather a panic in emerging markets as US-China trade tensions boiled and inspired risk aversion across major global benchmark indexes.
On Thursday, US President Donald Trump announced that the country will proceed with imposing more tariffs on about $300b in Chinese imports at 10 percent on September 1. This…