Goldman Sachs economists said expectations of further U.S. Federal Reserve rate cuts will likely support Asian currencies and bond markets, according to a report cited by Jinshi Data.
The bank maintains a bearish view on the U.S. dollar, projecting that emerging Asian markets could see notable gains in the coming months.
Key highlights from the report:
Currencies: Goldman Sachs expects the Taiwan dollar (TWD) and South Korean won (KRW) to outperform other Asian peers, including the Singapore dollar (SGD), Malaysian ringgit (MYR), Indian rupee (INR), and Indonesian rupiah (IDR).
Bonds: Anticipated Fed easing should provide a tailwind for Asian bonds, particularly in the Philippine five-year bond and India’s 30-year bond markets.
The analysis underscores how global monetary policy shifts are shaping investment flows into Asia, with both currency appreciation and bond demand expected to benefit from the Fed’s dovish pivot.
