Pressure returned to Asian currency markets on Tuesday (13 October\n2026). Although the US dollar eased in morning trading, the greenback\nremained close to an 18-month high after surging in the previous\nsession.<\/p>\n
Refinitiv data at 9.17am Jakarta time showed that six of the 10 Asian\ncurrencies being tracked had weakened against the US dollar. Three\ngained, while one was unchanged.<\/p>\n
The Taiwan dollar was the worst performer in morning trading, falling\n0.40%, followed by the South Korean won, which slipped 0.35%.<\/p>\n
The rupiah also remained in negative territory. Indonesia\u2019s currency\nweakened 0.22% to Rp17,935 per US dollar.<\/p>\n
The Philippine peso fell 0.13%, while the Chinese yuan and Malaysian\nringgit each declined 0.05%.<\/p>\n
By contrast, the Japanese yen posted the strongest gain, rising\n0.20%. The Thai baht gained 0.06%, and the Singapore dollar edged up\n0.01%.<\/p>\n
The Vietnamese dong was unchanged against the US dollar.<\/p>\n
The US dollar eased slightly in Asian trading on Tuesday morning. The\nUS Dollar Index (DXY) was down 0.14% at 102.441.<\/p>\n
That decline did little to alter the greenback\u2019s position. In the\nprevious session, the DXY had climbed 0.37% to 102.58, close to its\nhighest level since April 2025.<\/p>\n
Monday\u2019s dollar gains were driven mainly by demand for safe-haven\nassets after conflict in the Middle East intensified again.<\/p>\n
The Iran-backed Houthi group stepped up attacks on Saudi Arabia,\nwhile two oil tankers were also attacked over the weekend. The\ndevelopments renewed concerns about the security of energy supplies.<\/p>\n
Brent crude rose 2.3% to US$107.17 a barrel, approaching a two-week\nhigh. It is now around 45% more expensive than before the US-Israel war\nwith Iran began.<\/p>\n
Rising energy prices have revived inflation concerns, reinforcing\nexpectations that the Federal Reserve (Fed) will need to maintain tight\nmonetary policy.<\/p>\n
Cleveland Fed President Beth Hammack said the US central bank needed\nto move \u201crelatively quickly\u201d towards tighter policy to curb what she\ndescribed as increasingly widespread inflation.<\/p>\n
Long positions in the dollar have also increased sharply. In the week\nended 7 October, net dollar longs stood at about US$36 billion, up from\nUS$8.4 billion just three weeks earlier.<\/p>\n
Even so, the dollar\u2019s scope for further gains is thought to be\nnarrowing.<\/p>\n
\u201cWe\u2019re not sure that the latest wave of risk aversion will turn into\na sustained dollar rally,\u201d said Joel Kruger, market strategist at LMAX\nGroup, as quoted by Reuters.<\/p>\n
Kruger said cooling US economic data, easing inflationary pressures\nand market expectations of Fed rate increases that have largely already\nbeen priced in could limit further dollar gains.<\/p>\n
Market attention is now turning to the US consumer inflation report\ndue on Wednesday local time.<\/p>\n
The data is among the last important economic reports before the\nFed\u2019s policy meeting at the end of October.<\/p>\n
According to CME FedWatch, market participants currently see a 78%\nchance that the Fed will hold interest rates at this month\u2019s meeting, up\nfrom 51% a month earlier.<\/p>\n
\u201cThe real focus this week is the CPI data, and the numbers are likely\nto remain quite hot,\u201d said Marc Chandler, chief market strategist at\nBannockburn Global Forex, as quoted by Reuters.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/asian-currencies-under-heavy-pressure-rupiah-won-and-ringgit-fall-1791863435", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }