US Dollar Weakens as Asian Currencies Strengthen, Rupiah Modest in Gains
Jakarta—The majority of Asian currencies recorded appreciation against the US dollar during February 2026. The Indonesian rupiah remained in positive territory, though its appreciation was relatively modest compared to most other Asian currencies.
According to Refinitiv data, on the final trading day of Friday, 27 February 2026, the rupiah closed slightly weaker at 0.06% to Rp16,760/US$. Nevertheless, on a monthly basis, the rupiah still recorded appreciation of 0.12% against the US dollar.
However, this appreciation was insufficient to place the rupiah among Asia’s strongest-performing currencies. Several other Asian currencies achieved significantly larger appreciation during the month.
The Philippine peso recorded the largest appreciation in Asia for the month, gaining 2.04% to PHP57,642/US.Thaibahtfollowedwithasharpincreaseof1.68. The Chinese yuan also experienced considerable appreciation of 1.34% to CNY6.8579/US.Malaysia′sringgit, theneighbouringcurrency, rose1.29.
South Korean won strengthened 0.77% to KRW1,439.2/US, Taiwandollarincreased0.73, and Singapore dollar gained 0.60% to SGD1.2645/US.TheIndianrupeealsorecordedappreciationof0.68.
However, not all Asian currencies performed positively. The Japanese yen proved most pressured, weakening 0.83% to JPY156.05/US, whilsttheVietnamesedongdeclined0.62.
Asian currency movements throughout February proved quite unusual. Most regional currencies strengthened against the US dollar, even as the US dollar index (DXY) simultaneously rose. This monthly increase in DXY represented the strongest monthly gain since October 2025.
At the close of February trading, the US dollar index stood at 97.608, up 0.64% for the month. This dollar strength was partly driven by higher-than-expected US producer price data. The final demand Producer Price Index rose 0.5% monthly in January, exceeding market expectations of 0.3%. This data indicated that inflation pressures in the United States remained unresolved, making market participants cautious about predicting the direction of the Federal Reserve’s interest rate policy.
On one hand, elevated inflation narrows the scope for rate cuts by the Federal Reserve. On the other hand, markets also noted weakening in the US labour market, maintaining expectations for rate cuts of up to 62 basis points through year-end.
Additionally, the US dollar received support from increased demand for safe-haven assets amid geopolitical tensions, particularly regarding US-Iran relations. Although discussions on Tehran’s nuclear programme showed progress, the absence of a clear breakthrough kept markets vigilant regarding risks of conflict escalation.
This condition was reflected in the approximately 2% increase in oil prices during the previous weekend. Meanwhile, global market movements remained generally limited as investors weighed geopolitical uncertainty and developments in US tariff policy following the US Supreme Court’s invalidation of President Donald Trump’s emergency tariffs.