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ASIA FX: USD/Asia Pairs Off Earlier Highs in SEA

ASIA FX

In South East Asia FX, the early trend was very much for a firmer USD backdrop. This followed headlines around Trump tariff threats for China, Mexico and Canada (which could be enacted soon after Trump takes office in early 2025). We sit away from highs though for USD/Asia pairs, with some recovery in broader risk appetite, particularly in the equity space, weighing on USD gains. 

  • USD/PHP sits very close to record highs near 59.00, but hasn't convincingly broken through this figure level. Headlines crossed from the Budget Secretary that they may have to revise the growth target amid a weak PHP backdrop (per BBG).
  • USD/IDR spot is above 15900, around 0.25% weaker in rupiah terms. Earlier highs were at 15938. Recent highs just above 15950 remain intact. Ringgit is off by slightly more last near 4.4640/45. Earlier highs were marked at 4.4700 in the pair.
  • USD/THB got to 34.78 in the first part of trade, but now sits back near 34.69, close to unchanged versus the USD. Trade data showed both exports and import growing much stronger than forecast on a customs basis (up +14.6%y/y for exports). The trade deficit was slightly wider than forecast though (-$794mn versus -$402mn predicted). 
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In South East Asia FX, the early trend was very much for a firmer USD backdrop. This followed headlines around Trump tariff threats for China, Mexico and Canada (which could be enacted soon after Trump takes office in early 2025). We sit away from highs though for USD/Asia pairs, with some recovery in broader risk appetite, particularly in the equity space, weighing on USD gains. 

  • USD/PHP sits very close to record highs near 59.00, but hasn't convincingly broken through this figure level. Headlines crossed from the Budget Secretary that they may have to revise the growth target amid a weak PHP backdrop (per BBG).
  • USD/IDR spot is above 15900, around 0.25% weaker in rupiah terms. Earlier highs were at 15938. Recent highs just above 15950 remain intact. Ringgit is off by slightly more last near 4.4640/45. Earlier highs were marked at 4.4700 in the pair.
  • USD/THB got to 34.78 in the first part of trade, but now sits back near 34.69, close to unchanged versus the USD. Trade data showed both exports and import growing much stronger than forecast on a customs basis (up +14.6%y/y for exports). The trade deficit was slightly wider than forecast though (-$794mn versus -$402mn predicted).