US Dollar Slumps as Asian Currencies Strengthen in Unison
JAKARTA, KOMPAS.com - Pressure on the United States (US) dollar was evident in Wednesday’s trading (8/4/2026), as Asian currencies strengthened in unison, pushing the greenback away from its strong levels.
According to Bloomberg data, the rupiah exchange rate in the spot market closed stronger at Rp17,012 per US dollar, up 0.55 percent from the previous close at Rp17,105 per US dollar.
This strengthening aligned with the regional trend, showing simultaneous resistance to the dominance of Uncle Sam’s currency.
In the Asian region, nearly all currencies recorded appreciation. The Thai baht led the gains with a 1.60 percent surge, followed by the South Korean won which strengthened 1.57 percent, and the Philippine peso which rose 1.47 percent.
The Malaysian ringgit strengthened 1.27 percent, while the Japanese yen appreciated 0.89 percent. The Taiwan dollar and Singapore dollar each rose 0.66 percent and 0.65 percent against the US dollar.
This was followed by the Chinese yuan which rose 0.54 percent and the Indian rupee which strengthened 0.42 percent. Meanwhile, the Hong Kong dollar appreciated slightly by 0.04 percent.
Currency analyst Ibrahim Assuaibi assessed that the easing of geopolitical tensions in the Middle East was the main factor supporting financial market sentiment.
US President Donald Trump reportedly approved a ceasefire with Iran. In his social media statement, Trump said he would suspend military action for two weeks, while emphasising that the United States had achieved its core military objectives.
“President Donald Trump has approved the ceasefire. Trump stated in a social media post that he would suspend military action against Iran for two weeks, adding that the US had achieved its core military goals,” Ibrahim told the media on Wednesday afternoon.
The announcement was released less than two hours before the local time deadline of 20:00, which had previously been a concern for market players as a potential trigger for conflict escalation. Previously, Trump had even warned of significant risks if Iran did not comply with the agreement.
The ceasefire was said to have been mediated by Pakistan through intensive diplomatic efforts. The agreement depends on Iran’s commitment to ensure the security of shipping routes in the Strait of Hormuz, which is a strategic route for around 20 percent of global oil distribution.
Iran has also signalled readiness to de-escalate the conflict on a limited basis, by opening shipping routes during the ceasefire period, provided there are no hostile actions and ships coordinate with local authorities.
On the other hand, global market players are also awaiting the release of US inflation data, particularly the March Consumer Price Index (CPI), scheduled for Friday. The data is expected to provide an early picture of the impact of the energy price surge on inflation.
Meanwhile, domestically, the market responded positively to the government’s fiscal performance up to the end of March 2026. State revenue realisation reached Rp574.9 trillion, or grew 10.5 percent year-on-year (yoy), equivalent to 18.2 percent of the 2026 State Revenue and Expenditure Budget (APBN) target of Rp3.15 quadrillion.