FXStreet reports that economists at MUFG Bank said that widening regulatory curbs from China are damaging the Asian and commodity related currencies. 

“The latest new credit data from China revealed that credit growth expanded at its slowest pace since February 2020. The official China Securities Journal newspaper reported earlier this month that the growth rate of outstanding credit may bottom out and rebound in the fourth quarter of this year, providing a signal that policy setting may begin to turn more supportive for growth in China.”

“The release yesterday of a five year-year blueprint from the State Council and Communist Party’s Central Committee stating that they would ‘actively’ work on legislation in areas including national security, technology and monopolies is a further concern. The latest developments from China are continuing to create a less favourable backdrop for Asian and commodity-related currency performance.”