The haven-linked US Dollar mostly outperformed its ASEAN counterparts this past week, climbing against the Singapore Dollar, Indonesian Rupiah and Thai Baht. This is as rising longer-term Treasury yields continued fueling portfolio reallocation into value-oriented stocks as growth ones underperformed. Taking a look at developing markets generally, the MSCI Emerging Markets Index was relatively flat for the week.
Rising rates in the US are likely fueling gains in the Greenback, but there were a couple of notable exceptions within ASEAN and neighboring countries. The Philippine Peso held its ground as net foreign stock investment outflows slowed and the local central bank saw recent inflationary pressures as temporary. In India, the Rupee outperformed the US Dollar. Capital flows were positive as the Nifty 50 gained 2.81% this past week.
