Tenge strengthens against five Asian currencies since June
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The Kazakh tenge has appreciated against five Asian currencies since June, with the largest gain against the Japanese yen at 5.18%. The rally is attributed to rising oil prices amid the Persian Gulf war, which benefits oil-exporting Kazakhstan while pressuring oil-importing Asian economies.
Asian Currency Pressure
Most Asian currencies have weakened due to rising oil prices from the Gulf war and expectations of further Fed rate hikes, according to economist Eldar Shamsutdinov. The yen fell to 163 per dollar, its lowest since 1986, pressured by the Bank of Japan's loose monetary policy. The Indian rupee continues to decline despite $80 billion in support from the Reserve Bank of India, with analysts expecting a new historic low due to India's oil import dependence.
Oil Export Advantage
Economist Tulegen Askarov attributes the tenge's strength to Kazakhstan's oil export revenues, which increase with higher global prices. In contrast, oil-importing nations face higher energy costs, inflation, and currency pressure. Askarov noted that even high-tech economies like Japan and South Korea remain vulnerable to energy price shocks.
What's Next
The tenge's trajectory will depend on oil price movements and Fed policy decisions in the coming months. It remains unclear whether Asian currencies will recover if geopolitical tensions ease or if structural factors will prolong their weakness.
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Tenge strengthens against five Asian currencies since June
