Goldman Downgrades Ringitt, Baht and Rupiah

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.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza