Currencies

Currencies

Higher oil and firm US outlook weigh on Asian FX, pressuring Korean won and rupiah

Higher oil prices and a firmer US policy outlook kept Asian currencies under pressure last week, with weakness concentrated in the Korean won (KRW) and Indonesian rupiah (IDR). KRW softness prompted renewed verbal intervention, while Bank Indonesia (BI) stepped up FX operations to support the rupiah. KRW underperformance was described as flow-driven even as macro fundamentals remained supportive. Equity gains have been concentrated in a small number of AI-linked names, which has driven rebalancing and foreign outflows linked to concentration limits, creating a technical headwind for the currency. In Indonesia,...
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