On Thursday, most of the currencies from the Asian region recorded small to no surges in their trading prices.
It is surprising that this time, it is not the Asian drivers that have resulted in such behavior of the investors. It is actually the developments taking place in the European and the US regions that have raised many concerns.
The traders in the Asian markets are feeling hesitant and are fearing to add money into the Asian currencies. It is out of fear that the traders have started to go for currencies that are considered safe havens.
According to the economists, that are broader headwinds, they are expecting in the economy. This is the reason why investors are fearing that their investments may turn into losses if the contagion spreads.
The investors are afraid that the bank crisis may result in a chain reaction. This may end up reaching their countries as well as the currencies they support or invest in.
It is currently unpredictable how the market is going to react in the upcoming days. As of now, not much of a change has been witnessed in the Asian forex market.
The Japanese Yen Jumps 0.5%
While most of the Asian currencies have not witnessed any significant movements, the Japanese yen has demonstrated a strong performance.
It has emerged as one of the top-performing currencies and investors are feeling safe investing in the currency.
The yen has been performing well since the start of March and traders expect it is going to perform the same throughout the month.
Even though more than half of the month has passed, the yen is still trading close to its monthly high, which holds a lot of significance for investors.
The traders may continue trusting the performance of the yen and keep pouring money into it. This would help push the yen’s price higher and help it reach higher marks in the long term.
The report shows that in the latest session, the yen’s price has grown stronger by 0.5% against the dollar.
The Thai Baht Surged by 0.4%
The yen was not the only currency that demonstrated strong performance. Investors have also found the Thai baht to be quite promising in the latest session.
According to Asian traders, the Thai baht is a safer investment that they want to keep investing in. The baht has also experienced a strong surge in the latest session, having pushed up by 0.4%.
The Chinese Yuan has Remained Flat
The value of the Chinese yuan has recorded no gains or losses in the latest session. It has mainly remained flat throughout the session.
The yuan has recorded no push even though the analysts at Goldman Sachs have increased their outlook for the country’s economic growth for 2023.
They have increased the growth rate for the Chinese economy from 5.5% to 6.00% in the year 2023. As for the Chinese government, they have posted their expectations for the year 2023 economic growth to be 5%.
The traders are hoping that the analysts’ predictions may help push the trading price of the Chinese yuan higher in the future. It will be triggered by the bullish expectations of the analysts in China’s capability of achieving stronger economic growth.
It has been more than three years since the country has been fighting the pandemic. Finally, the country has almost gotten rid of the pandemic and its economy is moving towards a fast recovery.
The Malaysian Ringgit
When it comes to the Malaysian ringgit, it has plunged greatly against the dollar price. The report shows that the value of the ringgit has plunged by 0.6% against the dollar.
Apart from the above, the euro has recorded a 0.3% surge against the dollar while the Australian dollar has surged by 0.4%.