BENGALURU: Asian currencies gained on Monday as dollar weakness offered relief from recent losses, while equities climbed on hopes the US Federal Reserve would cut rates, easing economic pressures amid uncertainty over the new US tariff regime.
The Malaysian ringgit led the advance, strengthening 1% to 4.233 per dollar and snapping six straight sessions of losses. The Indonesian rupiah and Taiwan dollar surged as much as 0.7%, and the Philippine peso added 0.57%.
The South Korean won and Singapore’s dollar edged 0.2% higher.
The dollar index recovered marginally on Monday after tumbling more than 1% on Friday when President Donald Trump unveiled sweeping tariffs and after a dismal US jobs report sent traders scrambling to price in aggressive Fed rate cuts.
“Investors have shifted focus from trade uncertainties to the impact of the tariffs that have been in place for a while,” Maybank analysts said in a note.
“For now, the greenback may be caught in a tug of war between growth and inflation concerns that could leave it range-bound, but we look for the eventual slowdown in the US economy and resumption of Fed easing cycle to take the USD lower.”
Regional equity markets largely edged higher as the heightened prospect of lower borrowing costs helped soothe concerns about the US economy.
Seoul and Singapore gained as much as 1% each, and equities in Mumbai, Bangkok, and Manila rose between 0.4% and 0.8%.
Jakarta and Kuala Lumpur bucked the trend, slipping more than 0.3% each. This week’s ISM services data and jobless claims will be crucial in determining whether the Fed would move more aggressively to support the economy.
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