HSBC’s head of Asia FX Research, Joey Chew, recently sat down with CNBC to discuss the outlook for the currency and monetary policy in the region.
Chew began by discussing the impact of the COVID-19 pandemic on the Asian economies. He noted that the pandemic had caused a sharp contraction in growth in many countries, but that the recovery was now underway. Chew said that he expected growth to rebound strongly in 2021, as the region benefits from the global economic recovery and the rollout of vaccines.
Chew also discussed the geopolitical tensions in the region, particularly the ongoing trade dispute between the United States and China. He said that these tensions were a source of uncertainty for businesses and investors, and that they could weigh on economic growth.
Despite the challenges, Chew said that he was optimistic about the outlook for the Asian currency markets. He said that he expected the US dollar to weaken in the coming months, which would support Asian currencies. Chew also said that he expected central banks in the region to keep monetary policy accommodative, which would provide further support for growth.
Overall, Chew’s outlook for the Asian currency markets is positive. He expects growth to rebound strongly in 2021, and he expects the US dollar to weaken, which would support Asian currencies. Chew also expects central banks in the region to keep monetary policy accommodative, which would provide further support for growth.
