ANZ's Goh: Yuan Should Start to Stabilize

The video discusses the impact of the Chinese Yuan's weakness on the Malaysian Ringgit, highlighting the correlation between the two currencies. It examines the vulnerability of emerging market currencies like the Thai Baht and Philippine Peso, considering factors such as current account deficits and capital flight. The discussion also covers capital flows in relation to US yields and the potential for stabilization. Finally, it addresses the Federal Reserve's policy stance and market expectations regarding interest rates and quantitative tightening.

What is one reason the Malaysian ringgit is considered oversold?

• Increase in local tourism

• Malaysia's large commodity exports

• High correlation with the US dollar

• Weakening of the Japanese yen

Why is the Thai baht currently under pressure?

• Rising interest rates

• Dependence on tourism

• Decreasing foreign reserves

• High inflation rates

What is a major concern for the Philippine peso?

• Stable political environment

• Strong export growth

• Large current account deficit

• High foreign investment

What could potentially attract capital inflows back to the region?

• Strengthening of the euro

• Increase in US interest rates

• Decrease in local demand

• Stabilization of US dollar yields

What is the Federal Reserve's current stance on interest rates?

• Dovish

• Uncertain

• Neutral

• Hawkish