Anticipation of U.S. Federal Reserve interest rate cuts sparks potential gains for select Asian currencies. Experts suggest the Chinese yuan, Indian rupee, and South Korean won could benefit, considering factors like controlled yuan depreciation, carry trades boosting the rupee, and easing pressure on the won due to improved economic prospects.
1. U.S. Federal Reserve anticipated to cut rates; potential 25-basis-point cut as early as June.
2. Weaker U.S. dollar positive for certain Asian currencies.
3. Chinese yuan stabilizing, Indian rupee benefiting from carry trades, and South Korean won easing pressure.
4. Yuan stabilized around 7.10 against the dollar.
5. Chinese policymakers adopting fiscal stimulus and credit growth measures.
6. Indian rupee strengthened; RBI’s rate cut pace slower than the Fed.
7. Strong fiscal policy contributing to a well-performing Indian economy.
8. South Korean won to benefit from looser Fed policy, with potential gains.
9. Improved economic prospects in South Korea; IMF predicts 2.3% growth in 2024.
