Thai Rate Hold Confirms Asian FX Outlook: Tech-Linked Currencies Poised for Gains
The Bank of Thailand has maintained its policy rate at 1.00%, in line with market expectations, as inflation data for July showed a lower-than-expected print of 1.95% year-over-year.
US yields rose, the Dollar strengthened slightly, and equity futures rose after US inflation data came in line with expectations while Nvidia earnings beat consensus expectations.
Nvidia's CFO stated that the company expects revenue to grow approximately 70% in fiscal 2028, relative to analyst projections of 45%, but noted that supply constraints would impact margins moving forward.
Asia's tech-linked currencies are expected to outperform due to robust demand, according to MUFG Research. The strongest call is short USD/TWD, reflecting Taiwan's currency as a catch-up play to the strength seen in KRW.