OCBC strategists Sim Moh Siong and Christopher Wong have revised their forecasts for Asian currencies, projecting a slightly firmer profile against the US Dollar (USD), with the most notable upgrades for the Korean Won (KRW) and Malaysian Ringgit (MYR) [1]. The strategists attribute the KRW's improved outlook to stronger domestic fundamentals, increased exporter flows, and reduced capital outflow concerns. For the MYR, resilient economic growth, supportive external balances, fading political noise, and earlier measures to encourage FX inflows have contributed to the positive revision [1]. OCBC emphasizes that gains across Asian currencies are expected to be differentiated, with the extent and pace of appreciation dependent on country-specific fundamentals, monetary policies, fund flows, and external factors such as shifts in yields and oil prices [1].
Meanwhile, United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann report that the USD/SGD pair has retreated sharply after a recent spike, but downside momentum remains limited [2]. They expect the pair to trade within a broader 1.2680–1.2780 band in the coming weeks, with intraday pullbacks likely holding above 1.2695 and resistance at 1.2725/1.2735 [2]. The Singapore Dollar Nominal Effective Exchange Rate (S$NEER) remains elevated, suggesting a trading range of 1.2676–1.2740 [2]. UOB has shifted its USD/SGD outlook from negative to neutral, citing increased volatility and a wider trading range, but sees no clear signs of renewed weakness in the USD at this time [2].
Both sources highlight recent market volatility and the importance of country-specific factors in determining the trajectory of Asian currencies against the USD. While OCBC points to a firmer outlook for KRW and MYR, UOB notes that the Singapore Dollar is likely to remain range-bound amid heightened volatility [1][2].
CONCLUSION
OCBC's upgraded forecasts for KRW and MYR reflect improved fundamentals and supportive policy measures, while UOB sees the Singapore Dollar trading within a wider range due to increased volatility. The overall market takeaway is a cautiously optimistic outlook for select Asian currencies, with differentiated performance expected based on local and external factors.