Divergent Fortunes of Asian Currencies: Ringgit Strengthens, Rupiah and Yen Suffer
Divergent Fortunes of Asian Currencies: Ringgit Strengthens, Rupiah and Yen Suffer
Jakarta, CNBC Indonesia - The majority of Asian currencies moved lower against the US dollar in trading today, Monday (4/5/2026). Pressure emerged amid a slight strengthening of the US dollar in global markets.
Referring to Refinitiv data as of 09:15 WIB, out of eight monitored Asian currencies, three strengthened and five weakened against the US dollar.
The rupiah was one of the currencies that weakened this morning. The Garuda currency was at Rp17,335/US$, or down 0.17%.
However, the deepest weakening was recorded by the Thai baht. The baht was at THB 32.51/US, depreciatingby0.59, followed by the Japanese yen at JPY 157.11/US, down0.05.
On the other hand, the Malaysian ringgit became the Asian currency with the largest gain. The ringgit was at MYR 3.955/US$ after rising 0.30%. The Taiwan dollar followed with a 0.17% gain to TWD 31.56/US, whiletheSingaporedollarwasatSGD1.27/US after a slight 0.02% increase.
The movement of Asian currencies today is still influenced by the direction of the US dollar in global markets. The US dollar index or DXY was up slightly 0.03% to 98.183 as of 09:15 WIB.
Markets remain cautious regarding developments in US-Iran relations.
After US President Donald Trump stated that the US would begin assisting detained ships in the Gulf to exit the restricted waterway route. Hundreds of ships and up to 20,000 sailors are said to be unable to cross the Strait of Hormuz during the ongoing conflict.
Tensions have not eased after a tanker was reported to have been hit by an unidentified projectile in the Strait of Hormuz.
At the same time, Iran is still reviewing the US response to the latest peace proposal, while Washington continues to demand that discussions on Iran’s nuclear programme be included from the outset of any agreement.
This situation has kept market participants cautious. The Strait of Hormuz is one of the world’s most important energy routes, so disruptions in the area could keep oil prices high and add to global inflation concerns.
Asian markets also moved cautiously on Monday, while oil prices remained at high levels due to the lack of a US-Iran peace agreement. Brent was recorded around US$108.30 per barrel, while US crude was at US$102.01 per barrel.
In such conditions, the US dollar still has potential to be sought as a safe-haven asset.
When the dollar strengthens, other countries’ currencies, including Asian ones, tend to come under more pressure. Therefore, as long as US-Iran relations show no signs of improvement, the movement of regional currencies, including the rupiah, is likely to remain volatile.