FXStreet reports that Mitul Kotecha, Senior Emerging Markets Strategist at TD Securities, said that trade-orientated FX such as CNY, KRW, SGD and TWD will likely be the main beneficiaries of Biden Presidency, but high yielders such as IDR also likely to strengthen. 

“The prospects of a prolonged period of uncertainty surrounding the outcome of US elections would not usually bode well for EM assets but Asia is already proving highly resilient. It is increasingly looking likely that we see a Biden administration, with a split Congress but it is not a done deal, with litigation and recounts likely to prolong the outcome.  Tariffs may not be utilized so bluntly by Biden. This would likely bode well for Asia, given the highly trade-dependent nature of most economies in the region and their close connection with China. Additionally, the US would likely play a bigger role in global trade bodies.”

“A weaker USD will help lift all boats, but we do expect CNH to continue to be one of the leaders. Similarly, trade-orientated FX such as KRW, SGD and to a lesser extent TWD will likely be key beneficiaries.”