According to Jinshi, Joey Chow, head of Asian foreign exchange research at HSBC, said that Asian currencies will face downside risks in the coming months.
HSBC noted that the dollar has fallen an average of 5% against Asian currencies this quarter, and the market appears to have priced in most of the Fed's rate-cutting cycle over the next 12-18 months.
In addition, HSBC said that the potential risk of a significant increase in tariffs under a Republican president could also add pressure on Asian currencies.
