Macquarie: Most Bearish PHP & KRW Within Asia

The video discusses the dominance of the dollar, influenced by the Fed's hawkish stance, and the lack of strong alternatives like the euro and yen due to economic challenges. It examines the RMB's position amid China's economic outlook and the role of central bank reserves in Asia's FX performance. The Korean won faces vulnerabilities due to global risk sentiment and economic factors.

What is one reason for the US dollar's continued strength in the global market?

• The euro's strong economic performance

• Lack of viable alternatives to the dollar

• The yen's increasing value

• The Fed's dovish stance

Why does the PBC not have to worry about FX depreciation passing through to inflation?

• China lacks an inflation risk component

• China has a strong export market

• China's economic outlook is strong

• The PBC has high reserves

What has been a significant factor in the performance of Asian currencies from May to August?

• Strong economic growth in Asia

• Rising inflation rates

• Aggressive dollar selling by Asian central banks

• Increased foreign investments

What is a major challenge currently facing the Korean won?

• High inflation rates

• Weak tech sector cycle

• Strong global risk sentiment

• Large current account surplus

What is the best strategy for the Bank of Korea until the dollar turns around?

• Reduce foreign reserves

• Increase interest rates

• Cap the dollar-won exchange rate

• Manage the pace of currency intervention