Asian FX：Back to square one，Move from UW to MW Asia FX in GBI~EM； lower USD/ CNY target

J P M O R G A N Asia Pacific Emerging Markets Research 06 August 2024 Asian FX: Back to square one Move from UW to MW Asia FX in GBI-EM; lower USD/ CNY target • Rate differentials have dominated low yielding Asia FX. Short-term valuations have corrected in funders (i.e., JPY, CNH and THB), and even look tactically rich in MYR. INR remains a laggard on further USD weakness, while PHP, SGD and (eventually) TWD present better opportunities to be short USD. We close out UW THB and OW INR and turn MW Asia FX in ...