Dollar Kicked Everywhere: Yen and Rupiah Surge, Ringgit Weeps
The majority of Asian currencies strengthened against the US dollar in trading on Tuesday (8/9/2026). A fairly sharp weakening of the US dollar this morning gave room for nearly all Asian currencies to appreciate.
According to Refinitiv data as of 09:20 WIB, of the ten Asian currencies monitored, nine strengthened against the US dollar, whilst only one weakened.
The Japanese yen was the strongest performer in Asia this morning, surging 0.79% to JPY 153.16 per US dollar.
The South Korean won followed with a 0.52% gain to KRW 1,337.5 per US dollar. The Vietnamese dong and the Philippine peso both strengthened 0.22%, to VND 25,959 and PHP 62.444 per US dollar respectively.
The rupiah also moved positively, with the Garuda currency strengthening 0.14% to Rp17,605 per US dollar.
The Singapore dollar rose 0.13% to SGD 1.264 per US dollar, the Thai baht strengthened 0.12% to THB 32.80, the Taiwanese dollar gained 0.06% to TWD 31.487, whilst the Chinese yuan edged up 0.01% to CNY 6.7103 per US dollar.
On the other hand, the Malaysian ringgit was the only Asian currency to weaken this morning, slipping 0.02% to MYR 4.045 per US dollar.
The broad strength of Asian currencies came as the US dollar came under renewed pressure. The US dollar index (DXY) was down 0.41% this morning at 98.765.
The DXY extended its decline for a second day, hovering around its lowest level in more than a fortnight. Pressure on the US dollar intensified as the Japanese yen strengthened sharply once again.
The yen’s rally provided a major boost to the DXY’s decline, as the yen is one of the main components of the US dollar index. When the yen strengthens against the US dollar, downward pressure on the DXY grows accordingly.
Nevertheless, the US dollar’s weakness could still be curbed. Markets are awaiting US inflation data this week, namely the Producer Price Index (PPI) on Thursday and the Consumer Price Index (CPI) on Friday.
These inflation figures will serve as an important guide to the direction of US central bank policy (The Federal Reserve/The Fed) at the upcoming FOMC meeting on 15-16 September.
A better-than-expected US jobs report last Friday briefly raised the odds of a Fed rate hike in September. However, the dollar’s strength failed to persist, as markets still require firmer evidence on inflation.
OCBC analysts believe the US jobs report supports the dollar only to a limited extent and is insufficient to drive a sustained rally.
“The US jobs report supports the US dollar only to a limited extent, but is not enough to drive a sustained appreciation,” OCBC analysts wrote.
Markets are also still watching oil prices, which remain elevated due to US-Iran tensions around the Strait of Hormuz. High energy prices have the potential to keep inflationary pressure alive and keep the door open for a Fed rate hike.
For this morning, however, pressure on the US dollar remains dominant. This has allowed the majority of Asian currencies to strengthen, with the Japanese yen and the South Korean won leading the charge.