USD/JPY in particular fell below the 156 handle at one point. This had a positive spillover impact to Asian currencies in our region which are sensitive to JPY movements, including KRW, SGD, THB, and to a smaller extent the likes of TWD and PHP. Moving forward, our global team has kept their expectations for USD/JPY to move down below the 150 level over time, with an expectation for the Bank of Japan to potentially hike rates in the April meeting and with fiscal sustainability also key here.
Local factors were also key, with a better than expected result by the Bhumjaithai Party in the recent Thailand Elections, capturing up to 194 seats out of 500. Building a coalition is still needed, but the key change at the margin is that there is relative political stability in Thailand, and the outperformance of the Thai baht makes sense to our minds in the near-term.