Won, Yuan, and Ringgit Strengthen as Asian Currencies Dominate; Rupiah Weakens

The majority of Asian currencies strengthened against the United States dollar in morning trade on Tuesday (11/8/2026). The South Korean won and the Taiwanese dollar led the gains, both rising by 0.14%. The Malaysian ringgit also appreciated by 0.10% to MYR 4.092 per US dollar, while the Japanese yen and Chinese yuan saw modest increases.

In contrast, the Indonesian rupiah failed to follow the regional trend, weakening by 0.28% to Rp17,800 per US dollar. The Philippine peso was the worst performer in the region, dropping 0.39%, while the Thai baht also edged lower.

Currency movements were influenced by dynamics in the US dollar index (DXY), which was slightly weaker at 99.758 during the session. This followed a strengthening of the greenback on Monday, driven by rising oil prices ahead of the release of US consumer inflation data for July. The inflation figures are seen as a crucial indicator for the direction of the Federal Reserve’s interest rate policy.

Market expectations for a Fed rate hike in September have diminished following weaker-than-expected US labour market data. Fed funds futures now price in a 52% chance of a hike in September, down from 67% the previous week. Analysts at TD Securities noted that a new weakening trend for the US dollar is forming, although the currency may find support until softer inflation data allows the market to further reduce short-term rate hike expectations. Oil prices remain volatile, having surged over 4% on Monday after the US and Iran exchanged compensation demands, casting uncertainty over the reopening of the Strait of Hormuz.