Will USD/IDR, USD/PHP Reverse as Fed Rate Hike Bets Sink Stocks?

ASEAN Weekly Outlook – Indonesian Rupiah, Philippine Peso, Fed, US Dollar, SP 500, Emerging Markets

  • Indonesian Rupiah resilient, despite US Dollar gains on Fed, as central bank sold more debt
  • USD/IDR and Philippine Peso may look past respective monetary policy announcements next
  • Fed rate hike bets may keep building, sending stocks down and pressuring lower ASEAN FX

We recently released our 4Q forecasts for the US Dollar in the DailyFX Trading Guides page

This past week, the US Dollar appreciated against its major counterparts following the 2018 US midterms and Fed rate decision. That loosely translated into gains against some of its ASEAN bloc currencies such as the Singapore Dollar and Malaysian Ringgit. The Federal Reserve increased rate hike bets, which helped send the SP 500 lower on Friday and could have knock-on effects for risk trends and ASEAN FX next.

The Ringgit was perhaps particularly vulnerable after the Malaysian central bank left rates unchanged at 3.25% as expected. Bank Negara Malaysia added that the current rate ‘is consistent with the intended policy

Article source: https://www.dailyfx.com/forex/fundamental/article/special_report/2018/11/12/Will-USDIDR-USDPHP-Reverse-as-Fed-Rate-Hike-Bets-Sink-Stocks.html