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Moody's say currency flexibility supports credit quality of Asian sovereigns

Moody's Investor Services out with their latest report on Asian sovereigns

  • exchange rate flexibility, fiscal and monetary policy vigilance and efforts to revive domestic sources of growth will support the sovereign credit profiles of several Asian sovereigns during a period of heightened external pressures
  • Moody's expects that domestic factors will be the key determinants of the broad direction of capital flows into and out of these Asian countries in coming months-- in particular, whether their respective policies appear likely to revive growth, without weakening their fiscal, inflation and current account positions
  • Although investors may have largely discounted US monetary tightening and slower growth in China, the six Asian sovereigns covered in the report are still likely to see capital account pressures whenever unfavourable data are released or even when anticipated global events -- such as a rate hike by the US Fed -- occur.

Full report here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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