According to OCBC strategists Sim Moh Siong and Christopher Wong, Asian foreign exchange markets are expected to unwind the gains seen late Friday following Iran's renewed closure of the Strait of Hormuz [1]. The strategists highlight that high-beta currencies such as the South Korean won (KRW), which had previously benefited from positive developments, are likely to lead the regional pullback [1]. Other Asian currencies including the Taiwan dollar (TWD), Indian rupee (INR), Thai baht (THB), and Philippine peso (PHP) are also expected to soften due to their sensitivity to oil prices and overall risk sentiment [1].
Lower-beta currencies like the Chinese yuan (CNH) and Singapore dollar (SGD) may experience less volatility but are still anticipated to remain under pressure [1]. The strategists note that the US dollar (USD) should attract safe-haven demand amid the evolving geopolitical situation [1]. They emphasize the ongoing fluidity of geopolitical developments and suggest that two-way trading is likely as ceasefire negotiations continue [1].
No specific market reactions, analyst forecasts, or forward-looking statements beyond the expectation of two-way trading and continued pressure on Asian FX were provided in the source [1].
CONCLUSION
OCBC strategists expect Asian FX to retrace recent gains and remain under pressure due to renewed geopolitical tensions, particularly the closure of the Strait of Hormuz. High-beta currencies are seen as most vulnerable, while the USD is likely to benefit from safe-haven flows. The situation remains fluid, with two-way trading anticipated as developments unfold.