The majority of Asian currencies strengthened against the US Dollar\nin early trading this week, Monday (2_1\/9\/2026). However, the Rupiah\nmoved in the opposite direction, becoming the only currency to weaken\nthis morning.<\/p>\n
According to Refinitiv data as of 09:33 WIB, nine out of the ten\nmonitored Asian currencies managed to appreciate against the US Dollar,\nwhile only the Rupiah entered the red zone.<\/p>\n
The Thai Baht and Philippine Peso recorded the sharpest gains in Asia\nthis morning, both rising by 0.09%, with the Baht at THB 33.28\/US$ and\nthe Peso at PHP 62.767\/US$.<\/p>\n
The South Korean Won followed with a 0.06% increase, followed by the\nVietnamese Dong at 0.05% and the Taiwan Dollar at 0.04%. The Japanese\nYen, Chinese Yuan, and Singapore Dollar all rose by 0.03%, while the\nMalaysian Ringgit saw a slight increase of 0.02%.<\/p>\n
Conversely, the Rupiah was the only Asian currency to weaken, with\nthe \u2018Garuda\u2019 currency correcting by 0.28% to a position of\nRp17,780\/US$.<\/p>\n
The US Dollar remains the primary factor influencing the direction of\nAsian currencies this morning. The DXY was recorded rising slightly by\n0.03% to 100.256.<\/p>\n
While the strengthening is not substantial, the US Dollar remains\nabove the 100 level. This condition indicates that the greenback remains\nquite solid after surging more than 1% last week following the Fed\u2019s\ninterest rate hike and the opening of possibilities for further\nincreases.<\/p>\n
Markets currently estimate the probability of a Fed rate hike at the\nOctober meeting to be 55%, an increase from 42.5% the previous week,\naccording to CME FedWatch.<\/p>\n
\u201cWe do not think the by-election will be a limiting factor for the\nFed to raise interest rates again in October,\u201d said Thomas Simons, chief\nUS economist at Jefferies, as quoted by Reuters.<\/p>\n
In addition to the Fed, market attention is also focused on the\nJapanese Yen. The Japanese currency fell sharply last week despite the\nBank of Japan (BOJ) raising interest rates to a 31-year high.<\/p>\n
The BOJ raised interest rates to 1.25% last Friday. However, the\ndecision failed to provide a significant boost to the Yen because the\nmarket was disappointed by the split vote and the lack of a sufficiently\nclear signal regarding the direction of future rate hikes.<\/p>\n
The Yen weakened sharply before a Nikkei report suggested that\nJapanese officials were conducting a \u2018rate check\u2019. In practice, a rate\ncheck occurs when authorities request exchange rate quotations from\nbanks to gauge market conditions, a move often viewed by market\nparticipants as an early signal of potential currency intervention.<\/p>\n
\u201cThe standard for the BOJ to convince the market of their hawkish\nstance remains high, especially in managing expectations regarding the\nYen,\u201d said Fred Neumann, chief Asia economist at HSBC, as quoted by\nReuters.<\/p>\n
Neumann assessed that investors in the coming weeks and months are\nlikely to test the BOJ\u2019s seriousness in pushing for higher interest\nrates to offset the Fed\u2019s tightening.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-surge-while-rupiah-lags-behind-1789962866", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }