HSBC says the Indonesian rupiah, Malaysian ringgit, Thai baht, and Philippine peso will perform better than previously expected in 2016.
A foreign exchange strategist in HSBC said that, unlike north Asia, ASEAN countries are more closely tied to china, and can benefit from its rebalancing and capital outflows and some countries, like Indonesia, have taken initiatives to attract foreign inflows.
However, HSBC is still cautious on the region’s long-term outlook, saying sluggish global growth, ongoing risks out of China and fewer policy options could hinder currency strengthening.
The bank said they do expect markets to swing between hope and anxiety.
