CoinWorld News, Standard Chartered Bank ASEAN and South Asia Foreign Exchange Research Co-Head Divya Devesh stated in its 2026 Economic Outlook that the bank is bearish on the currency trends in Asia this year, expecting them to generally underperform the US dollar. The bank believes that the "de-dollarization" narrative lacks credibility and instead observes signs of "re-dollarization," supported by strong US growth expectations, productivity improvements, and the AI boom. Since the US dollar still offers attractive yields, the proportion of Asian exporters converting dollars into local currencies remains relatively low. He added that US AI-related transactions are driving foreign investment in US financial assets to record highs, and this trend is unlikely to reverse.
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CoinWorld News, Standard Chartered Bank ASEAN and South Asia Foreign Exchange Research Co-Head Divya Devesh stated in its 2026 Economic Outlook that the bank is bearish on the currency trends in Asia this year, expecting them to generally underperform the US dollar. The bank believes that the "de-dollarization" narrative lacks credibility and instead observes signs of "re-dollarization," supported by strong US growth expectations, productivity improvements, and the AI boom. Since the US dollar still offers attractive yields, the proportion of Asian exporters converting dollars into local currencies remains relatively low. He added that US AI-related transactions are driving foreign investment in US financial assets to record highs, and this trend is unlikely to reverse.