Asian currencies boosted by AI exports: Goldman Sachs
Currencies from South Korea, Taiwan, and Malaysia have outperformed those in countries less exposed to Silicon Valley’s spending.
Goldman Sachs has highlighted how Asian currencies, particularly those of South Korea, Taiwan, and Malaysia, are benefiting from the growing demand for AI technologies. According to the analysis, these countries, which are major exporters of chips and other components used in AI development, have seen their currencies outperform those of other Asian economies.
This is largely due to the recycling of US dollars by manufacturers, which they use to strengthen their local currencies. The positive impact is evident in South Korea's recent exports, which surged by nearly 70% in August compared to the previous year, driven by a surge in demand for memory chips. This trend provides a partial shield against the inflationary pressures affecting other Asian economies, exacerbated by the ongoing Iran war and the resulting restrictions on fuel imports.
Brief written by urgent.news from Semafor's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
