If there’s one spot that traders ought to look to amid all of the fiscal dangers in most main economies and the de-dollarisation narrative, it is Asia ex-Japan (AxJ). The US has its personal set of points and so does Europe, and with Japan additionally going through an influence battle between the federal government and central financial institution, there are clear concerns for a shift of cash to the opposite aspect of the globe.
That’s what we noticed occur in 2025, regardless of the primary half of the 12 months being littered by dangers of Trump’s tariffs. And we’re seeing sentiment proceed to construct in direction of that once more as we get into 2026.
The newest Asian foreign money positioning ballot by Reuters right here is one which underscores the prevailing narrative and as soon as once more, Asian currencies are those which may really profit essentially the most this 12 months amid all of the havoc across the globe. That regardless of the everyday correlation that geopolitical tensions and flight to security positioning might be unhealthy for rising market currencies.
For some context, this ballot is one which focuses on what fund managers consider are present market positions within the 9 Asian currencies listed:
Some fascinating findings:
Lengthy Chinese language yuan bets proceed to nudge greater to the most important in 15 yearsTraders pull again on bets towards the South Korean gained after months of bashingLong bets on the Singaporean greenback rise to the very best since July final yearLong Thai baht bets climb to the very best since June final yearBullish bets on the Malaysian ringgit (strongest performing Asian foreign money in 2025) proceed to carry
