Asian currencies mostly moved higher in trading on Tuesday (27\nOctober 2026).<\/p>\n
Refinitiv data at 9.19am WIB showed six of 10 Asian currencies\nstrengthening against the US dollar, while the other four remained in\nnegative territory.<\/p>\n
The Taiwan dollar posted the biggest gain in morning trading, rising\n0.25% to TWD32.495 per US dollar. The South Korean won followed with a\n0.18% increase, while the Thai baht gained 0.15%.<\/p>\n
The Chinese yuan and Malaysian ringgit each rose 0.02%, while the\nVietnamese dong gained just 0.01%.<\/p>\n
By contrast, the rupiah was Asia\u2019s worst-performing currency that\nmorning. The Indonesian currency fell 0.10% to Rp18,130 per US\ndollar.<\/p>\n
The Philippine peso weakened 0.09%, the Japanese yen fell 0.08%, and\nthe Singapore dollar edged down 0.02%.<\/p>\n
Despite gains in most Asian currencies, the US dollar itself was\nstronger. At the same time, the US dollar index (DXY) rose 0.06% to\n102.018.<\/p>\n
That left the DXY near its highest level in a week. The dollar drew\nsupport from improving investor appetite for risk assets, following a\nrenewed rise in technology shares on Wall Street.<\/p>\n
Demand for the US technology sector picked up again after the latest\ndevelopments from artificial intelligence (AI) companies boosted market\noptimism.<\/p>\n
The US dollar also benefited from the euro\u2019s weakness. The single\nEuropean currency fell towards a two-week low as markets again grew\nconcerned about France\u2019s fiscal position.<\/p>\n
Selling of French government bonds pushed the country\u2019s sovereign\nrisk premium to its highest level since the 2011 European debt crisis.\nThis also weighed on the euro and indirectly supported the DXY.<\/p>\n
However, currency markets\u2019 main focus this week will be a series of\ninterest-rate decisions by major central banks.<\/p>\n
Fed and BOJ in focus<\/strong><\/p>\n The US central bank, the Federal Reserve (Fed), will conclude its\ntwo-day meeting on Wednesday US time, or Thursday in Indonesia.<\/p>\n Markets expect the US central bank to hold interest rates at this\nmeeting, after raising them in September.<\/p>\n The European Central Bank (ECB) is also expected to keep rates at\n2.5% on Thursday.<\/p>\n The Bank of Japan (BOJ) will announce its policy decision on Friday.\nIt is expected to hold its rate at 1.25%, but markets will be looking\nfor indications about the prospects for a further increase.<\/p>\n The yen is among the currencies receiving the closest attention ahead\nof the decision. It fell 0.08% that morning to around JPY157.63 per US\ndollar.<\/p>\n The yen came under pressure after giving back some of the gains it\nhad made the previous week.<\/p>\n The BOJ continues to face relatively high price pressures. The latest\ndata showed that Japanese services-sector inflation rose 3.7% year on\nyear in September, reinforcing the view that a further rate increase\nremains possible.<\/p>\n \u201cWe expect the BOJ to conclude that underlying consumer inflation is\nnow generally consistent with its 2% price stability target,\u201d MUFG\nanalysts wrote, according to Reuters.<\/p>\n However, MUFG considers that reaching the inflation target once is\nnot enough. The BOJ is expected to shift its focus from the risk of\ninflation being too low to monitoring risks in both directions.<\/p>\n Markets currently put the probability of a BOJ rate increase in\nDecember at slightly above 50%.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/us-dollar-lags-behind-ringgit-and-yuan-won-while-rupiah-remains-under-pressure-1793073024",
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"sponsor": "Okusi Associates",
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