According to a latest poll by Reuters
- Investors downbeat on most currencies
- Rising yields to blame
- Short positions in INR at 9-months high
- Positions in MYR turn bearish following elections
Since we entered into Q2, Asian currencies have been lagging behind the dollar in terms of performance so far. A further climb in yields coupled with some contagion effects from emerging markets elsewhere could be enough to spook investors further and that could potentially see a mass exodus of funds out of South East Asia - where yields are relatively high.
Asian currencies' performance against the US dollar in Q2
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