U.S. investment bank Goldman Sachs says it expects the rout in Asian emerging market currencies to continue, downgrading its forecasts for battered currencies in the region.
Goldman revised down its three, six and 12-month targets for the Malaysian ringgit, Thai Baht and Indonesian rupiah on Friday.
The currencies, together with their emerging-market peers, have taken a beating recently amid expectations for an unwinding of U.S. monetary stimulus.
The rupiah should take the biggest hit as investors flee the volatile group of currencies for the safety of developed markets, according to Goldman.
It expects the rupiah to weaken to 11,800 per dollar in the next year, compared with a previous target of 10,500. That implies a fall of 9 percent from current levels of 10,830.
The rupiah hit its lowest level in more than four years on Friday, racking up losses of 12 percent in the year-to-date.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.