Momentum Gauge Signals Risk to Southeast Asian Currency Rally.

According to a closely-watched momentum gauge, the recent rally in Southeast Asian currencies against the US dollar may lose steam as investor enthusiasm wanes. The Relative Strength Index for a regional gauge has surpassed the 70 mark, indicating that the currencies are overbought. While Asian currencies have experienced gains due to expectations of Federal Reserve rate cuts, Southeast Asian currencies have outperformed others. However, experts believe that the boost from relative interest rates may have reached its peak, and some currencies may have more room to rise than others. [Extracted from the article]