According to ANZ senior currency strategist, Irene Cheung
Cheung argues that trade frictions are likely to cap gains in Asian currencies even as the dollar may keep weakening after the Fed's meeting yesterday.
She adds that increased trade tensions and higher US funding costs will weigh on regional FX, at least until there's more clarity on US trade tariffs and China's response in the coming weeks.
Meanwhile, she notes that the firm favours the Thai baht and Taiwan dollar in the Asian FX space due to their current account surpluses. While also noting the opposite in saying that the firm doesn't favour the Indian rupee and Philippine peso because of the two countries' current account deficits.
Here's a look at how Asian currencies are performing against the dollar so far today:
