23 Jun 2014
Oil impacts on Asia FX so far limited - ANZ
FXStreet (Guatemala) - ANZ strategists Irene Cheung and Hui Ying Chan noted that we have yet to see a broad, negative impact on Asia FX.
Key Quotes:
“Past episodes of oil price spikes suggest a significant impact on Asia FX if brent crosses the USD120 mark."
"The majority of Asia FX is vulnerable, particularly the THB, KRW and INR given high oil import intensity of their economies."
"IDR will also stand to lose out as its trade deficit will likely widen."
"Among oil importers, the RMB will likely be among the less impacted given its relatively low share of oil imports in GDP."
"Malaysia, Asia’s key oil exporter (apart from Vietnam), has seen its net oil exports declining progressively to a far smaller surplus now."
Key Quotes:
“Past episodes of oil price spikes suggest a significant impact on Asia FX if brent crosses the USD120 mark."
"The majority of Asia FX is vulnerable, particularly the THB, KRW and INR given high oil import intensity of their economies."
"IDR will also stand to lose out as its trade deficit will likely widen."
"Among oil importers, the RMB will likely be among the less impacted given its relatively low share of oil imports in GDP."
"Malaysia, Asia’s key oil exporter (apart from Vietnam), has seen its net oil exports declining progressively to a far smaller surplus now."