Currency traders smile near a screen showing the Korea Composite Stock Price Index , top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, Dec. 10, 2024.
An in-line inflation reading is unlikely to move the market significantly, but if headline and core inflation exceed expectations, it would be negative for emerging market currencies, said Poon Panichpibool, a markets strategist at Krung Thai Bank. Investors also await more detailed measures from China's annual Central Economic Work Conference this week, after the world's second-largest economy pledged to ease its monetary policy to boost consumption.
However, Panichpibool cautioned that the trend of stronger EM Asian currencies won't last long and could reverse course whenever the second Trump government decide to deliver tariff hikes as promised.