Inflation remains the overriding concern in Asia with the spectre of slowing global growth and an ongoing European debt concerns overhead. So far activity data shows that China is slowing only gradually, but tightening financial conditions in the interbank market could lead to a reduction in lending to businesses. Risk aversion could see short-term gains for USD-Asia, but ultimately currencies should strengthen by year-end on further monetary tightening.
Included in this report:
GDP, CPI and benchmark interest rate forecasts p. 2.
FX outlook overview p. 3.
Individual Asian FX summaries and forecasts pp. 4-8.
Summary of selected recent EM Asia publications p. 9.
Commerzbank Corporates & Markets
Emerging Markets