Asian currencies rise

Asian currencies rose on Monday as the dollar fell after US President Donald Trump's inauguration speech disappointed some investors who were looking for more details on his plans for fiscal stimulus.
Trump's first address as president on Friday highlighted his "America first" policies that were short on specific proposals, and disappointed investors hoping for details on his plans to stoke growth, spend on infrastructure and reduce taxes.
"Overall, investors were disappointed that Trump did not provide details on his plans to stimulate the US economy at his...inauguration speech," analysts for DBS Bank said in a research note.
"For now, the market continues to view the current US dollar fall as a correction," they added.
Emerging Asian currencies rose broadly, including the Chinese yuan and the Singapore dollar, which both rose around 0.5 percent.
Investors are waiting for Trump and his administration to flesh out details of fiscal stimulus plans over their first 100 days in office, analysts said.
"If there's a greater certainty that stimulus will be quite significant in this year, then I expect the dollar to really be rallying strongly," said Chang Wei Liang, FX strategist for Mizuho Bank in Singapore.
Such a dollar rally could occur toward the end of Trump's first 100 days in office, once there is more clarity on his fiscal policies, Chang said.
"But if the stimulus proves to be a bit more of a medium-term thing, then there could be some corresponding amount of paring of (long) dollar positions," he added.
In his inaugural address, Trump pledged to end what he called an "American carnage" of rusted factories and vowed to put "America first", laying out two simple rules - buy American and hire American.
Trump's new administration said on Friday its trade strategy to protect American jobs would start with withdrawal from the 12-nation Trans-Pacific Partnership (TPP) trade pact.
A White House statement issued soon after Trump's inauguration said the United States would also "crack down on those nations that violate trade agreements and harm American workers in the process."
Asian currencies have historically tended to weaken in the weeks after the US president's inauguration speech, Alastair Pinder, Asian FX strategist for HSBC, said in a research note.
"Trump's focus on the economy and trade protectionism during his inauguration suggest this time will be no different," Pinder wrote.
"Rhetoric from Trump's team towards the likes of China has already intensified in recent months and if this escalates further, we believe volatility in Asian currencies will be sure to rise," Pinder added.