Despite some notable exceptions, Asian currencies have been staging a resurgence of late. The hand-wringing in emerging markets seems to have vanished, and with it, the weakness that was plaguing most Asian currencies. A decline in the price of oil has helped, but will the good times last?
Asian currencies have been staging a comeback recently thanks in part to a fall in the price of crude oil.
Expectations for rising inflation and further rate hikes have been pared right back and real rates, which once looked insufficiently high, now look elevated.
At the same time, current account balances, previously weighed down by energy imports, are now looking less stressed. It all seems too good to be true. It probably is.