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HSBC: Asian currencies face downside risks in the coming months
According to Joey Zhou, Head of FX Research at HSBC Asia, Asian currencies will face downside risks in the coming months. HSBC Bank commented that considering the average 5% decline of the US dollar against Asian currencies this quarter, the market seems to have already priced in most of the Fed’s rate-cutting cycle over the next 12-18 months. HSBC also stated that the potential risk of a significant increase in tariffs during the Republican presidency may add pressure to Asian currencies.