Japan will on Monday release Q1 figures for capital spending, highlighting a modest day for Asia-Pacific economic activity. In the previous three months, capex was down 0.2 percent on year.
Indonesia will provide April numbers for imports, exports, trade balance and inflation. Imports are expected to rise 6.5 percent on year, up from 5.34 percent in March. Exports are called higher by an annual 5.75 percent, up from 3.16 percent in the previous month. The trade surplus is seen at $2.75 billion, down from $4.33 billion a month earlier.
Overall inflation is expected to eased 0.02 percent on month and climb 1.95 percent on year after rising 1.17 percent on month and 1.95 percent on year in March. Core CPI is seen steady at an annual 2.50 percent.
Hong Kong will release April data for retail sales; in March, sales were down 3.5 percent on year.
Several or the regional nations will see May results for their respective manufacturing PMIs from S&P Global, including South Korea, Japan (Jibun), Taiwan, Vietnam, the Philippines and Indonesia.
Finally, the markets in New Zealand (queen’s birthday), Malaysia (Agong’s birthday), China (Dragon Boat Festival) and Thailand (queen’s birthday) are closed on Monday.
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Listed FX volumes continue to set records on SGXFX’s flagship contracts as market participants seek secure and cost-efficient sources of liquidity in an increasingly uncertain trading environment
KC Lam, SGXFX
Trading on SGXFX went from strength to strength in 2024 as market turmoil took hold of the markets on the back of diverging interest rate paths between the US Federal Reserve and the Bank of Japan. Over the last 10 months of the financial year, FX volumes at the Singapore exchange grew by a healthy 54%, with the USD/CNH futures contract reaching its highest volume in August as the yen carry trade unwind was in full swing.
The contract continued to perform well in the early part of 2025 as markets wrestled with increasing trade tensions and general uncertainty. The surge of 80% of USD/CNH volumes to $33.5 billion in early April – the second highest since the yen unwind the previous summer – is symptomatic of the increasingly recurring bouts of volatility in FX markets in Asia and more broadly.
“The reason for the recent high volumes is obviously the US-China tariffs and the subsequent measures from both sides,” explains KC Lam, global head of rates and FX at SGXFX. “During times of market stress, there is always a major uptick in trade volumes of the USD/CNH contract on SGXFX, which is used by market participants worldwide to express FX risk. About 40% of our volumes are traded during US and Europe hours.”
As the second most exchange-traded FX futures contract in the world, USD/CNH at SGXFX is often used by market participants for price discovery and formation. Given the contract’s scope and market depth, it serves as the bellwether of general FX market volatility in the region.
Trading of other futures contracts at SGXFX has also grown substantially in recent years. Volumes of the INR/USD and KRW/USD contracts grew by more than 50% during the same period, indicating a general trend in FX trading in Asia towards a trusted exchange such as SGXFX. While over-the-counter (OTC) FX trading remains dominant, FX traded on exchanges has grown and gained significant ground in recent years.
“There is a change in the way market participants trade FX these days,” says Lam. “Primary venues and OTCFX remain important, but there are an increasing number of people looking for price and trend guidance from exchanges – such as SGXFX for Asian currencies and CME for non-Asian currencies. Many market participants – even very large OTC participants – come to us for market data via application programming interfaces to connect to their trading engines for price formation and discovery purposes. The very fact they are using this data suggests we are an increasingly important source of price formation.”
The level of trust earned by SGXFX has been achieved by its determination to provide added value to the region’s capital markets through greater price transparency and efficiencies. To this end, from its inception, the exchange has focused on Asian currencies, which are backed by the thriving flows of Asian commodities and equities.
As FX trading volumes have increased at SGX FX, the exchange’s offering and clientele have evolved in tandem. The community of market participants trading on the exchange is now increasingly global and diverse, with regional and international banks, as well as large institutional firms, seeking to reduce their trading costs through the efficiencies that exchanges provide.
“Trading on SGX FX is very efficient because market participants can offset their margins not only between FX positions, but also with other asset classes they might be trading on the exchange,” explains Lam. “This is particularly beneficial for those who wish to offset the margin on their directional FX positions with their commodities or equities trades.”
To further enhance its offering, the exchange is ramping up the trading of FX options on the exchange – particularly for the CNH contract. In addition, SGX FX is expanding into other emerging market currencies with the launch of its maiden Brazilian real futures contract in June 2025. This initiative, in collaboration with the B3 exchange, focuses on growing Brazilian real futures liquidity during Asian trading hours.
SGX FX was named Best Asia FX derivatives exchange at the FX Markets Asia Awards 2025.
The Indian Rupee continues to weaken amid renewed USD demand from importers and persistent foreign fund outflows.
USD/INR may face headwinds as the US Dollar comes under pressure following Moody’s downgrade of the US credit rating.
The INR finds some support from falling crude oil prices, driven by reports of progress in US-Iran nuclear talks.
The Indian Rupee (INR) remains subdued against the US Dollar (USD) on Monday, continuing its losing streak for the sixth successive day. Moreover, fresh USD demand from importers and ongoing foreign fund outflows continue to weigh on the INR.
However, the upside of the USD/INR pair could be limited as the US Dollar (USD) came under renewed pressure following Moody’s Investors Service downgrade of the US credit rating by one notch, citing rising debt levels and mounting interest payment obligations.
However, the INR receives support from a decline in crude oil prices, amid reports of progress in US-Iran nuclear negotiations, which could help cushion the Rupee’s downside. Iran’s president reaffirmed his country’s commitment to continue talks with the US while standing firm on its nuclear rights. Given that India is the world’s third-largest oil consumer, lower oil prices generally support the Rupee by easing the country’s import bill.
Indian Rupee depreciates despite a weaker US Dollar
The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, is trading lower at around 100.80 at the time of writing. The US Dollar faces challenges as Moody’s Ratings has downgraded the US credit rating from Aaa to Aa1, aligning with previous downgrades by Fitch Ratings in 2023 and Standard & Poor’s in 2011.
Moody’s now forecasts US federal debt to rise to approximately 134% of GDP by 2035, up from 98% in 2023. The federal deficit is projected to widen to nearly 9% of GDP, fueled by mounting debt-servicing costs, increased entitlement spending, and declining tax revenues.
A series of weak US economic indicators has reinforced expectations of rate cuts by the Federal Reserve later this year. Notably, the University of Michigan’s Consumer Sentiment Index fell sharply to 50.8 in May from 52.2 in April, the lowest level since June 2022 and the fifth consecutive monthly decline. Analysts had forecast a rise to 53.4.
The US Dollar may find some support from easing global trade tensions. A preliminary trade deal between the US and China proposes significant tariff reductions—Washington is set to lower duties on Chinese goods from 145% to 30%, while Beijing will cut tariffs on US imports from 125% to 10%.
Market sentiment is also lifted by renewed optimism over a potential US-Iran nuclear deal and upcoming talks between US President Donald Trump and Russian President Vladimir Putin aimed at de-escalating the Ukraine conflict.
India’s BSE Sensex rose 3.6% last week, rebounding from the previous week’s decline. The rally was fueled by easing geopolitical tensions between India and Pakistan, growing optimism around India–US trade ties, and expectations of domestic interest rate cuts.
Meanwhile, a high-level Indian delegation led by Minister of Commerce and Industry Piyush Goyal is set to meet with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick during his visit, which continues through May 20. Goyal is expected to push forward discussions on a proposed India–US bilateral trade agreement.
USD/INR rises above 85.50 amid a mixed-to-bullish bias
The Indian Rupee continues its losing streak for the sixth consecutive day, with the USD/INR pair trading near 85.60 on Monday. Technical indicators on the daily chart maintain a bullish bias, as the pair moves upwards within an ascending channel pattern. Additionally, the 14-day Relative Strength Index (RSI) remains above the 50 level, suggesting a persistent bullish sentiment.
The USD/INR pair could target its monthly high of 85.90, reached on May 9. A break above this level could allow the pair to explore the region around the upper boundary of the ascending channel at 86.40.
Immediate support lies at the nine-day Exponential Moving Average (EMA) around 85.30, followed by the ascending channel’s lower boundary at 85.10. A decisive break below this zone could undermine short-term bullish attempts and open the door for a decline toward its eight-month low of 83.76.
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off” refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
With FX volumes in Asia-Pacific (Apac) growing rapidly on the back of heightened volatility, HSBC is leveraging its regional and international footprint to broaden its FX offering, providing clients with robust solutions to meet their trading and hedging needs
As worldwide trade disruptions have led to market volatility and uncertainty in Apac, market participants in the region are assessing the risks to their operations and exploring options. As one of the premier FX banks in the world, with a long-standing presence in the Apac region, HSBC is front and centre in the drive to support its clients in navigating this uncertainty and understanding how the current environment is impacting their business.
Volkan Benihasim, HSBC
“HSBC has been helping its clients navigate uncertainty for 160 years,” says Volkan Benihasim, global head of FX, emerging markets rates and commodities at HSBC. “That’s what we do. And, despite uncertainty around tariffs, there will undoubtedly be further diversification of supply chains in Asia, which will bring about new trade corridors and new currency needs to meet the changing of business in the region. It’s part of our expertise to continue successfully accompanying our clients through this change.”
The winds of change were already blowing in Asia’s FX markets before the current trade uncertainties swept in. Authorities across a number of the region’s restricted markets had started to relax the rules governing their currencies and opened up the FX market to offshore investors. This has brought a flurry of trading activity and a significant increase in the level of trading sophistication among the region’s broad spectrum of market participants. As a result, Apac FX markets have become some of the most dynamic in the world.
Corporates in the region have been particularly active. Usually more risk-averse than other market participants and less tolerant of unexpected gains or losses, the frequency of volatility-inducing events in the past five years has substantially increased their awareness of the risks they face. To manage these risks, they are being increasingly flexible and open to more sophisticated FX hedging solutions than ever before.
China’s central position in Asia
Regardless of the outcome of forthcoming trade negotiations, it is undeniable that China will remain central to the economic fabric of Apac, and HSBC will be there to facilitate trade and investment flows in and out of the region. The bank’s determination to provide high-quality liquidity to clients looking to gain access to onshore and offshore renminbi (CNH) liquidity remains unwavering.
With its leading international bank position in the Chinese market, HSBC is always at the forefront of market FX developments in the country. To that end, HSBC initiated the first trade of the Macanese pataca when it was included in the China Foreign Exchange Trade System in January 2024; and, when China allowed a select number of qualified banks to trade CNH in its free-trade zones, HSBC was one of the first banks to execute trades under this new framework. Since its launch, this new trading regime has garnered significant interest from local interbank market participants and corporate clients in China.
“Being one of the first banks to trade CNH onshore underlines our position in the China market. In addition, we were able to support wider market participants in preparing for the new regulation on margining for uncleared derivatives in China,” says Benihasim. “We leveraged the expertise acquired in other jurisdictions and our extensive know-how, both in global and local markets, to provide critical insights to local participants and help them prepare for the upcoming regulatory change.”
In 2024, HSBC also streamlined key processes to enhance the client experience and operational reliability in China. To that end, the bank has electronified the onboarding process for trading FX products and digitalised post-trade, including enabling swift and accurate settlements.
HSBC has also developed tailored solutions that help local clients with significant global FX hedging needs to manage their overseas direct investments across international markets.
Hong Kong as a gateway
Since the creation of the CNH market in Hong Kong more than 15 years ago, the special administrative region has served as the largest provider of renminbi liquidity outside of mainland China. As Chinese companies continue to expand their business overseas and new corridors emerge, such as in the Association of Southeast Asian Nations and the Middle East, that role is likely to be reinforced as they tap into the deep liquidity Hong Kong markets offer. On a similar footing, the significant interest in China’s economy from international corporates and institutional clients is also driving significant FX activity from offshore clients towards Hong Kong.
The Bond Connect and Stock Connect schemes – initiated by Chinese regulators to encourage closer co-operation between mainland China and Hong Kong’s markets – have boosted FX liquidity in the city, and the introduction of a renminbi trade finance facility by local authorities in early 2025 will further drive the flow liquidity of the Chinese currency in Hong Kong.
“Throughout the years, China has been opening up the FX market to the outside world and we expect that trend to continue,” says Benihasim. “As the renminbi continues to internationalise and becomes increasingly used as a global trade currency, there is no doubt Hong Kong’s future as an FX hub will be reinforced. As the leading international bank in mainland China and Hong Kong, HSBC remains the go-to for offshore players with dealings in China and for onshore firms with international interests.”
Colloquially referred to as ‘the Hong Kong bank’, HSBC has been present in this important financial centre since the inception of the bank. While Hong Kong is a vital gateway for market participants seeking access to the Chinese onshore FX market, HSBC’s FX offering for the local market in this special administrative region is noteworthy in its own right.
With a diversified client base in Hong Kong spanning retail, wealth, corporates and financial institutions, HSBC has very high internalisation rates of spot flows, enabling it to achieve tighter pricing for clients, in addition to significantly reducing information leakage and market impact. Across all trading channels, HSBC leads its peers in the e-FX trading space, and the bank consistently ranks high in the provision of spot, forwards and swap liquidity on multi-dealer platforms, particularly for the USD/HKD currency pairs.
The trading of Asian currency has also gathered pace in Singapore, with non‑deliverable forwards trading by clients performing particularly well, and volumes increasing 30% over the past 12 months. Additionally, HSBC Singapore was the first registered foreign institution to transact a Korean won-deliverable FX swap offshore, as part of the Bank of Korea’s FX Market Structural Improvement Plan, aimed at liberalising the currency. As a result, eligible HSBC clients now enjoy longer trading hours for deliverable KRW.
Also, in Singapore, HSBC provided corporates with tailored analysis and strategies to manage their exposures and achieve their objectives. To this end, the bank introduced a new instrument – the bonus forward – to allow corporates to express a range-bound view on the FX market and achieve a more favourable hedge rate within that range. And, to better serve its growing client base of private banks, HSBC has enhanced distribution of FX derivatives through multi‑dealer channels.
In India, the authorities have gone a long way to liberalise the local FX market, with USD/INR trading now a 24-hour market and the creation of Gift City, a financial services and technology hub located in Gujarat. With an advantageous regulatory environment, Gift City provides international firms with a favourable access point into the growing Indian market and a good base for Indian firms going global.
With a presence spanning more than 150 years in the country, HSBC serves the full client spectrum in India. With a growing share of the market, HSBC can provide liquidity across products and is one of the few banks providing USD/INR pricing across time zones and for up to five years. Always at the forefront of product liberalisation, HSBC has now executed its first deal-contingent trade in FX options.
With an extensive network of trading and sales sites across Apac and worldwide, HSBC is able to provide its clients with access to deep onshore liquidity pools across a wide range of currencies and products. The bank tailors its approach to clients across countries to allow them to hedge their FX exposure in restricted currencies and around the world.
HSBC was named FX house of the year for Apac, China, Hong Kong, Singapore and India at the 2025 FX Markets Asia Awards.
Global trade tensions have turned the normally benign Hong Kong dollar into a treacherous currency to trade, with wild spot moves forcing hedge funds to unwind leveraged positions that were widely seen as relatively safe bets.
“There were a lot of carry-type positions and people playing the range in that currency [HKD] that I think have been forced to reduce as a function of just general risk management,” says the head of FX at a global bank.
HKD has been pegged to USD in a range of 7.75 to 7.85
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When the New Taiwan dollar (TWD) surged unexpectedly on May 2 and 5, the country’s giant life insurers were immediately blamed for the move, given their huge size relative to the Taiwanese domestic market.
Market participants, however, have mixed views on how active the insurers really were – but they agree the moves were exacerbated by hedge funds betting on the currency’s rise after the central bank decided not to intervene aggressively to halt its wild appreciation.
“This has been driven by
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MUFG is bolstering its FX franchise amid a rising interest rate environment that has led investors to renew their attention in the Japanese FX market. MUFG’s domestic success and growing onshore presence have strengthened the firm’s ambition to become an Asia powerhouse in FX
David Wright, MUFG
After decades of ultra-low interest rates, the Bank of Japan’s determination to gradually raise rates has caught the attention of global market participants. Combined with the recent volatility of the yen, Japan’s new interest rate environment has led international actors to seek the services of such firms as MUFG, which can provide access to broad and deep liquidity in the Japanese market as well as low-latency trading, efficient execution and extensive knowledge of the specificities of the Japanese market.
MUFG is the prime FX liquidity provider in Japan. With a banking presence in the country for more than 360 years, the firm has established deep and profound relationships with a wide array of FX market participants. Like its international counterparts, this domestic client base has become more sophisticated. As a result, the bank has invested heavily in its FX franchise to provide corporates, financial institutions, insurance firms and banks with the means to compete in Japan, Asia and worldwide.
MUFG has broadened the scope of bespoke solutions available to domestic and international clients to cater to these evolving needs. The bank has diversified the number of accessible trading channels, with a particular focus on electronic trading, and has invested heavily in this area to help clients trade more efficiently.
“We’ve made great efforts to invest in and extend our technology capabilities that we’ve developed for our core clients, domestic and global corporates,” says David Wright, global head of FX trading and distribution at MUFG. “Straight-through processing of FX transactions is becoming more prevalent in Japan, and this goes hand in hand with MUFG’s push for digital solutions in transaction banking and payments.”
As the activities of Japanese FX market participants have become more mature, their centre of attention has also become more global. To this end, MUFG is actively broadening its outreach across the world, and in Asia in particular. With an onshore presence in 18 markets across the Asia-Pacific region, MUFG is deeply entrenched and determined to use its strong base in Japan to intensify its operations.
“With the recent unprecedented volatility experienced in global markets, we work with our clients to assure access and liquidity to global markets, including FX. As the largest financial institution in Japan, MUFG is the go-to FX bank in the country,” says Wright. “While we appreciate and continue to focus on our clients in Japan, we want to leverage our position to grow globally. We are present in more than 40 markets worldwide, but focused on expanding our footprint in Asia. Our goal is to become an Asia powerhouse, providing exceptional service to clients in the region and global clients accessing markets in Asia.”
To achieve this, MUFG has expanded its e-FX capabilities in line with the expectations of clients at home and abroad. A key component of MUFG’s strategy to extend the reach and scope of its e-FX franchise is its partnership with Morgan Stanley. In 2008, the two banks formed a strategic alliance to collaborate within global investment banking and, in 2010, established their Japanese securities joint ventures. In 2024, the partnership was further enhanced to include the FX business.
“The rapid electronification of FX trading and the introduction of global financial regulations in recent years have brought about operational and technological challenges that required substantial investment in FX trading technologies,” explains Wright. “Given the productive collaboration between MUFG and Morgan Stanley, both banks decided to enhance the scale of that collaboration to leverage the complementary strengths of each party. MUFG’s immense balance sheet and solid infrastructure in Japan, together with the strength of Morgan Stanley, provide MUFG with a truly global capability.”
As part of the initiative, dubbed Alliance 2.0, the collaboration makes it possible for MUFG to leverage Morgan Stanley’s market-leading FX technology and infrastructure to better service MUFG’s clients through enhanced risk management and execution efficiency.
MUFG was named FX house of the year Japan at the FX Markets Asia Awards 2025.
Singapore will on Tuesday release Q1 numbers for unemployment, highlighting a very light day for Asia-Pacific economic activity.
In the three months prior, the jobless rate was 1.9 percent.
Also, the markets in Japan are closed on Tuesday for Showa Day and will re-open on Wednesday.
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When the economist and geopolitical strategist Brunello Rosa was finalising drafts of his book Smart Money last year, he noted presciently that critical events might unfold before its publication in paperback.
The book, written with co-author Casey Larsen, envisages a new cold war unfolding between the US and China in which “digital de-dollarisation” plays a central role.
The paperback is due out in June. In the meantime, the fallout from the Trump administration’s tariff announcements in early
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In just a few years, Wells Fargo’s FX volumes in Asia have strengthened and, with a robust FX product offering, the bank expects to onboard more clients eager for cross-currency swaps and customised pricing
While being a relative newcomer to the FX landscape in Asia, Wells Fargo has long served a clientele in the fixed income space in the region. But, by launching a pricing engine at Singapore’s SG1 in the summer of 2024, the firm demonstrated its commitment to Asian FX by distributing prices to its clients directly from the region. The bank can now deliver low‑latency customised pricing to its clients across the entire Asia‑Pacific (Apac) region.
Vincent Hindman, Wells Fargo
“Having a colocated e-FX pricing engine in Singapore has been hugely helpful for the build-up of our FX business in Asia,” explains Vincent Hindman, global co-head of macro at Wells Fargo. “Given the needs of our clients in the region, it was essential for us to have a low latency and customised pricing stream that we could deliver to clients – particularly for those that are high volume and systematic in nature, where latency makes a big difference.”
In setting up its FX business in Asia, Wells Fargo’s strategy was to focus – first and foremost – on Group of 10 products and expand from there as opportunities arose. The plan proved to be extremely successful as volumes more than doubled in its second year of operation in the region (2023), before growing an additional 55% in 2024, with cross‑currency swaps being a central component of that growth.
“We have become one of the liquidity providers of choice in G10 swaps within the Asian time zone as we actively make markets in large sizes for various client types, including banks, central banks and hedge funds,” says Hindman. “We’ve taken market share from our competitors in all segments and are now top three in the global cross-currency swaps space. Our offering is truly differentiated in the FX marketplace and has been extremely well received by our clients.”
Wells Fargo’s success in the Asia FX space stems from its large institutional client network, which spans 17 countries in the Apac region. Extending its offering to include FX was a natural progression for Wells Fargo as many of its clients were already actively trading dollar‑denominated fixed income products with the bank. Providing currency trading and hedging was a logical complement to these existing activities.
Mandy Wan, Wells Fargo
“In 2024, we onboarded a very large percentage of our fixed income clients to our FX offering,” says Mandy Wan, head of markets, Apac, and co-head of corporate and investment banking, Apac, at Wells Fargo. “Because we already had relationships with these large institutions here in Asia, we felt that adding an FX offering would bring great value to our clients. It was a tremendous opportunity for Wells Fargo to be more relevant to our clients in Asia. And, given the current uncertainty in the markets, our ability to provide diversified solutions and products is welcomed by our clients.”
Recycling risk flow
Wells Fargo started trading with many new counterparties in 2024 across the institutional client spectrum and services clients in the region with large dollar hedging and funding needs. Many institutional clients in Asia look to the US market for investments and funding, given the fragmented nature of the Asian market and the limited size of most local markets. But, to do so safely, these market participants often look to hedge their dollar exposure through FX instruments such as cross-currency swaps, which has been very popular with Wells Fargo’s clients.
“To win business in Asian FX – especially in the G10 market – we were very intentional in areas we would like to compete in,” says Wan. “We want to be competitive and relevant to our clients. We leverage the strength of our global franchise where we could recycle risk flow between regions: clients in Asia with dollar requirements on one side, and US corporate and institutional clients with interests in Asia on the other.”
The next phase of Wells Fargo’s FX venture in Asia will be to ramp up its involvement in the emerging markets currency space, as well as FX options that the bank started trading in the region in early 2025.
“Now that we are further along our FX venture in Asia and are being recognised for our progress in the G10,” says Hindman, “our goal is to continue down that product spectrum to become more relevant to our client base in the US and Asia by building out our emerging markets currency and FX options capabilities.”
Wells Fargo was named FX house of the year G10 (Asia hours) at the FX Markets Asia Awards 2025.
US president Donald Trump’s whipsawing tariff policies created a perfect storm for foreign exchange options dealers, as hedge funds rushed to short US dollar positions while systematic volatility sellers and large macro funds sat on the sidelines.
The ensuing volatility left traders wondering if they had slipped into the wrong desks, or even another dimension.
“The scale of the moves for EUR/USD on April 11 made it more volatile than USD/TRY on the day,” says Saurabh Tandon, global head of FX
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FX Markets is delighted to announce the winners of the Asia Awards 2025.
The eighth edition of the FX Markets Asia Awards recognises and showcases the best banks, trading platforms and technology providers in the Asia-Pacific region (Apac).
The awards recognise the firms that have proven themselves in FX trading, whether that’s as a liquidity provider in local markets, prime brokerage and overlay provider; algo builder; trading venue; software provider; or data vendor.
This year’s awards spanned more than 28 categories and attracted 92 entrants from a wide range of participants, with the winners being announced in Singapore.
Among the highlights, HSBC picked up nine wins, including four in the liquidity provider local market categories – China, Hong Kong, India and Singapore – as well as overall FX house of the year Apac. Deutsche Bank landed two awards for South Korea and overall FX house of the year ASEAN, while UBS also secured two for the best Asia FX spot house and best FX single-dealer platform for Asian currencies.
Bank of America scooped its first Asia award for best Asia FX options house, as did Credit Agricole for best Asia NDF house and Wells Fargo for FX house of the year G10 (Asian hours). ANZ, MUFG, OCBC Bank and State Street TradeNexus were also awarded.
HSBC also secured best FX overlay manager for Asia clients, best Asia FX forwards and swaps house, best LP for Asia bank clients and best FX algo provider for Asia currencies. NatWest won best FX prime broker for Asia and, in a new category for 2025, State Street Currency Management won best FX hedging initiative.
In the venue and technology categories, Bloomberg, SGXFX, 360T, smartTrade Technologies and oneZero were also winners.
Choosing winners is never an easy task. Entrants submitted written pitches and the final decisions were made by a panel of judges, which included FX Markets’ editors, weighing a number of factors including strategic clarity, growth, risk management discipline, innovation and adaptability, thought leadership, as well as a commitment to investing in the business. If decisions were tight, client feedback helped settle the issue. Judges were not allowed to contribute to categories where there may be conflicts of interest.
Congratulations to our winners and thank you to all who entered this year’s awards.
FX house of the year Australia ANZ
FX house of the year China HSBC
FX house of the year Hong Kong HSBC
FX house of the year India HSBC
FX house of the year Japan MUFG
FX house of the year Singapore HSBC
FX house of the year South Korea Deutsche Bank
FX house of the year G10 (Asia hours) Wells Fargo
Overall FX house of the year ASEAN (Malaysia, Indonesia, Philippines, Thailand, Vietnam) Deutsche Bank
Overall FX house of the year Asia-Pacific HSBC
Best Asia FX spot house UBS
Best Asia FX forwards and swaps house HSBC
Best Asia FX options house Bank of America
Best Asia non-deliverable forwards house Crédit Agricole CIB
Best LP for Asia Regional and private banks HSBC
Best Asia multi-dealer FX trading venue Bloomberg
Best Asia FX derivatives exchange SGXFX
Best Asia FX trading venue for retail clients OCBC Bank
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Indonesia’s new central counterparty (CCP) for foreign exchange derivatives is to seek recognition from regulators in three overseas jurisdictions this year, amid a flurry of membership enquiries from foreign banks.
“[Foreign banks] have shown their enthusiasm [and] willingness to join,” said Abdul Hadie, head of strategic planning and enterprise risk management at Indonesia Clearing and Guarantee Corporation (IDClear).
“The major concern is when we will apply for recognition in their home
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China will on Thursday release February figures for industrial profits, highlighting an extremely light day for Asia-Pacific economic activity.
In January, profits were down 3.3 percent on year.
Thursday is also the last day before a lengthy break for the Indonesia stock market; it’s off Friday for Saka New Year and then all next week for Eid-ul-Fitr.
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The Indian Rupee remains stable, with USD/INR hovering near a seven-week low of 86.20.
The INR faces potential headwinds from rising crude Oil prices amid ongoing geopolitical tensions in the Middle East.
The US Dollar strengthens as risk aversion rises due to concerns over tariff policies.
The Indian Rupee (INR) remains stable against the US Dollar (USD) during the Asian trading hours on Friday, with USD/INR holding near a seven-week low of 86.20, recorded on Thursday. However, further downside of the pair may be limited as the Greenback gains strength amid rising risk aversion driven by concerns over US tariff policies.
The INR also faces potential headwinds from rising crude Oil prices amid ongoing geopolitical tensions in the Middle East, as India, the world’s third-largest Oil consumer, remains sensitive to energy costs. Israel has launched a new ground operation in Gaza, breaking a two-month ceasefire, while the US continues airstrikes against Iran-backed Houthi rebels in Yemen.
Indian equities gained as Foreign Portfolio Investors (FPI) turned buyers in two of the past four sessions, according to provisional data. Market participants are closely monitoring investor flows ahead of the FTSE March semi-annual review later today, with IIFL projecting net inflows of $1.4 billion into Indian markets.
Tech stocks led the rally, mirroring gains in US markets, while banking stocks maintained their upward momentum this month, supported by slower inflation, which has allowed the Reserve Bank of India (RBI) to adopt a more accommodative stance toward the Indian Rupee.
The RBI recently implemented its first rate cut in nearly five years, aligning with market expectations. With liquidity concerns persisting in the Indian financial system, the central bank is expected to continue easing to support growth. India’s GDP expanded by 6.5% in the current financial year, down from 8.2% in the previous period.
Indian Rupee could appreciate as US Dollar may struggle amid declining bond yields
The US Dollar Index (DXY), which measures the USD against six major currencies, is trading higher near 103.90. However, the US Dollar may face challenges as US bond yields decline, with investors seeking safety in Treasuries amid economic uncertainties.
Federal Reserve (Fed) Chair Jerome Powell downplayed the inflationary impact of tariffs, calling it temporary, but acknowledged the challenges in assessing broader effects. While recession risks have risen, Powell suggested they remain relatively low for now.
US Initial Jobless Claims increased to 223K for the week ending March 15, slightly missing estimates of 224K and exceeding the previous week’s revised figure of 221K (from 220K). Additionally, the Philadelphia Fed Manufacturing Survey for March eased to 12.5 MoM, down from February’s 18.1. This marked the second consecutive monthly decline, though the drop was less severe than the expected 8.5.
US President Donald Trump urged the Federal Reserve (Fed) to lower interest rates, citing the economic impact of tariffs. Trump posted on the Truth Social platform that the Fed would be better off cutting interest rates as US tariffs begin to take effect in the economy. He added, “Do the right thing,” “April 2nd is Liberation Day in America!”
The Reserve Bank of India has likely been “opportunistically” absorbing USD inflows in recent sessions, possibly to rebuild foreign exchange reserves used to support the INR in recent months, according to reports.
The yield on the 10-year Indian G-Sec dropped to 6.68%, its lowest level in three years, as expectations of lower interest rates grew. The RBI recently implemented its first rate cut in over four years, with lower-than-expected inflation in February reinforcing prospects for further easing this year.
Technical Analysis: USD/INR could test nine-week lows near 86.00
The Indian Rupee (INR) remains stable, with the USD/INR pair trading around 86.30 during Asian hours on Friday. Technical analysis of the daily chart suggests a strengthening bearish bias, as the pair remains within a descending channel pattern. Additionally, the 14-day Relative Strength Index (RSI) is positioned slightly above the 30 mark, reinforcing the bearish outlook. A break below 30 could indicate an oversold condition, potentially triggering an upward correction.
The USD/INR pair could find immediate support at a nine-week low of 86.14 level, recorded on January 13, followed by the lower boundary of the descending channel near the psychological level of 86.00 level.
On the upside, the nine-day Exponential Moving Average (EMA) at 86.57 could act as the initial barrier. A break above this level could improve the short-term price momentum and support the USD/INR pair to explore the area around the descending channel’s upper boundary near the 87.10 level.
Since the start of Donald Trump’s second US presidency, many of his tariff-related social media posts have tended to appear late New York time.
This piles extra pressure on the Asia trading session when G10 currencies are less liquid and creates risk management challenges for foreign exchange options market-makers.
Barry McCarthy, head of FX derivatives trading for North America at Deutsche Bank, says this is particularly the case if news lands when markets are closed over the weekend, making Asia
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Citi is deploying its new-look single-dealer platform (SDP) to emerging markets in a bid to offer better and faster electronic onshore pricing to users through a single gateway.
Following the relaunch of Velocity 3.0 in 2023, the US bank has focused on consolidating its various electronic foreign exchange pricing platforms – including CitiFX Pulse, its execution and treasury management platform for corporate clients – into a single application programming interface (API).
“A key deliverable for us
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