Standard Chartered: Asian currencies expected to underperform against the US dollar this year
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Standard Chartered: Asian currencies expected to underperform against the US dollar this year
According to Jinshi Data, Divya Devesh, Co-Head of ASEAN and South Asia Foreign Exchange Research at Standard Chartered, stated in the bank's 2026 economic outlook that the bank holds a bearish view on Asian currencies this year, expecting them to broadly underperform against the US dollar. The bank finds the narrative of "de-dollarization" unconvincing, instead observing signs of "re-dollarization," supported by strong growth expectations in the United States, rising productivity, and the artificial intelligence (AI) boom. As the US dollar continues to offer attractive yields, the rate at which Asian exporters convert US dollars into local currencies remains low. He added that AI-related transactions in the US are driving foreign capital inflows into US financial assets to record highs, a trend that is difficult to reverse.
Navigating Web3 tides with focused insightsTechFlow news, on January 15, according to Jinshi Data, Divya Devesh, Joint Head of ASEAN and South Asia Foreign Exchange Research at Standard Chartered, stated in the bank's 2026 economic outlook that the bank holds a bearish view on Asian currencies this year, expecting them to broadly underperform against the dollar. The bank believes the "de-dollarization" narrative lacks credibility, instead observing signs of "re-dollarization," supported by strong U.S. growth expectations, productivity gains, and the AI boom. As the dollar continues to offer attractive yields, the proportion of dollars converted into local currencies by Asian exporters remains low. He added that AI-related transactions in the United States are driving foreign capital purchases of U.S. financial assets to record highs, a trend difficult to reverse.
