The majority of Asian currencies strengthened against the US dollar\nin trading on Tuesday (8\/9\/2026). A fairly sharp weakening of the US\ndollar this morning gave room for nearly all Asian currencies to\nappreciate.<\/p>\n
According to Refinitiv data as of 09:20 WIB, of the ten Asian\ncurrencies monitored, nine strengthened against the US dollar, whilst\nonly one weakened.<\/p>\n
The Japanese yen was the strongest performer in Asia this morning,\nsurging 0.79% to JPY 153.16 per US dollar.<\/p>\n
The South Korean won followed with a 0.52% gain to KRW 1,337.5 per US\ndollar. The Vietnamese dong and the Philippine peso both strengthened\n0.22%, to VND 25,959 and PHP 62.444 per US dollar respectively.<\/p>\n
The rupiah also moved positively, with the Garuda currency\nstrengthening 0.14% to Rp17,605 per US dollar.<\/p>\n
The Singapore dollar rose 0.13% to SGD 1.264 per US dollar, the Thai\nbaht strengthened 0.12% to THB 32.80, the Taiwanese dollar gained 0.06%\nto TWD 31.487, whilst the Chinese yuan edged up 0.01% to CNY 6.7103 per\nUS dollar.<\/p>\n
On the other hand, the Malaysian ringgit was the only Asian currency\nto weaken this morning, slipping 0.02% to MYR 4.045 per US dollar.<\/p>\n
The broad strength of Asian currencies came as the US dollar came\nunder renewed pressure. The US dollar index (DXY) was down 0.41% this\nmorning at 98.765.<\/p>\n
The DXY extended its decline for a second day, hovering around its\nlowest level in more than a fortnight. Pressure on the US dollar\nintensified as the Japanese yen strengthened sharply once again.<\/p>\n
The yen\u2019s rally provided a major boost to the DXY\u2019s decline, as the\nyen is one of the main components of the US dollar index. When the yen\nstrengthens against the US dollar, downward pressure on the DXY grows\naccordingly.<\/p>\n
Nevertheless, the US dollar\u2019s weakness could still be curbed. Markets\nare awaiting US inflation data this week, namely the Producer Price\nIndex (PPI) on Thursday and the Consumer Price Index (CPI) on\nFriday.<\/p>\n
These inflation figures will serve as an important guide to the\ndirection of US central bank policy (The Federal Reserve\/The Fed) at the\nupcoming FOMC meeting on 15-16 September.<\/p>\n
A better-than-expected US jobs report last Friday briefly raised the\nodds of a Fed rate hike in September. However, the dollar\u2019s strength\nfailed to persist, as markets still require firmer evidence on\ninflation.<\/p>\n
OCBC analysts believe the US jobs report supports the dollar only to\na limited extent and is insufficient to drive a sustained rally.<\/p>\n
\u201cThe US jobs report supports the US dollar only to a limited extent,\nbut is not enough to drive a sustained appreciation,\u201d OCBC analysts\nwrote.<\/p>\n
Markets are also still watching oil prices, which remain elevated due\nto US-Iran tensions around the Strait of Hormuz. High energy prices have\nthe potential to keep inflationary pressure alive and keep the door open\nfor a Fed rate hike.<\/p>\n
For this morning, however, pressure on the US dollar remains\ndominant. This has allowed the majority of Asian currencies to\nstrengthen, with the Japanese yen and the South Korean won leading the\ncharge.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/dollar-kicked-everywhere-yen-and-rupiah-surge-ringgit-weeps-1788839507", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }