APAC currencies: Challenging backdrop

2026

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AI-generated summary

1) This report forecasts a modest average appreciation of APAC currencies against the USD in 2H26, contingent on de-escalating geopolitical tensions and a reversal in safe-haven USD demand, though higher energy prices may temper growth.
2) * Forecasts a 2% average appreciation for APAC currencies against the USD in the second half of 2026.
* Identifies North Asian currencies (CNY, TWD, KRW) and select Southeast Asian currencies (SGD, MYR) as favored.
* Highlights downside risks for THB, IDR, INR, and PHP due to weaker macro fundamentals and energy import vulnerabilities.
3) APAC currencies, USD forecast, geopolitical tensions, energy prices, currency appreciation

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