BENGALURU: Asian currencies traded mostly sideways on Friday, with the Thai baht being the notable exception, while regional stock markets inched lower on fading enthusiasm for AI-linked bets, rising geopolitical tensions and renewed worries over US tariffs.
The baht advanced 0.4 percent to 31.02 per US dollar, on track for a 0.5 percent weekly gain and a fifth straight monthly rise.
Rising gold prices spurred bullion-related inflows and prompted dollar conversions into the local currency, said Poon Panichpibool, a market strategist at Krung Thai Bank.
Elsewhere, the Indian rupee, Malaysian ringgit, South Korean won, Singapore dollar and the Philippine peso were little changed on the day.
The peso has gained 0.8 percent so far this week and is up more than 2 percent in February, while the won is up 0.8 percent this week.
Even so, the MSCI gauge of emerging market currencies has climbed for three straight weeks, adding about 0.6 percent this week and more than 1 percent in February, as investors position for a softer US dollar and seek carry in higher-yielding assets.
The ringgit has strengthened for seven straight months and has added about 0.4 percent this week. Taiwan’s dollar has gained 0.5 percent this week, while Indonesia’s rupiah is headed for its best week since late September.
The dollar index was little changed for the week, but was on track for a more than 0.5 percent rise in February after three months of declines.
Maybank said it still sees the current backdrop as favourable for selling the dollar on rallies, reiterating its house view for a weaker greenback in the first half of 2026 and renewed support in the second.
Markets are closely tracking US–Iran nuclear talks, as any diplomatic breakdown would likely spark a prolonged conflict in the Middle East. This could trigger an oil price shock, rekindle global inflation and worsen the terms of trade for Asia’s net energy importers.
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