FXStreet reports that economists at MUFG Bank expect Asian currencies to continue to trend stronger in 2021.

“The weakening trend for the US dollar against Asian currencies has been relentless since the middle of last year and there are few signs that it is set to reverse anytime soon.”

“Asian currencies are continuing to benefit in part from the relative cyclical outperformance of Asian economies during the COVID-19 crisis. The spread of covid remains more contained within Asia allowing domestic economies to expand more without restrictions and fear impacting activity in comparison to in Europe and America.”

“There are some signs of slowing momentum in China which has led the global recovery from the COVID-19 shock. We continue to believe though that economic fundamentals remain favourable for further Asian currency gains in 2021.”