While such moves would typically pressure their currencies against the dollar, raising inflation worries, further easing expected from the Federal Reserve next month would offer some relief.
Central banks in Asia have started cutting interest rates more aggressively than expected, and others may join the fray in the coming months, as they seek to counter the drag on growth from US President Donald Trump’s tariffs.
The shift emerged this week, as Indonesia and New Zealand surprised markets with their dovish tilts, underscoring how policymakers are bolstering their defenses against the US trade war. Attention turns to South Korea and the Philippines next week for any hints of softening.
