On an aggregate basis, the upward momentum in Asian currencies also started in late-November 2019. The agreement by both parties on resisting competitive devaluations boosted the overall sentiment for the renminbi and Asian currencies in general. The rebound in sentiment for the renminbi (and Asian currencies in general) also came on the back of more favourable macro statistics in China. The surge in Asian currencies is also related to the fact that the strength of the greenback is waning. Among these, the risk of a pronounced global financial market correction is one factor that will be closely watched by economists, given the strong linkages between global financial markets.

Source: The Edge Markets February 05, 2020 03:33 UTC