Earlier this week, investor sentiment was frayed after Washington threatened to impose additional tariffs on Beijing in retaliation over the coronavirus outbreak.
"The last thing global investors need right now is a one-two punch from trade war risks spiking amid the coronavirus pandemic," said Han Tan, market analyst at FXTM.
Investors of trade-reliant economies cheered the news, with the South Korean won strengthening as much as 0.9% to hit its strongest level in more than three weeks, while the Indian rupee firmed 0.3%.
The easing of lockdown measures in different parts of the world has also lifted sentiment and supported some riskier assets in the past few sessions.
The Indonesian rupiah strengthened 0.6% after reports that the country's foreign exchange reserves rose by $6.9 billion in April to $127.88 billion, mainly due to the government's US-dollar bond sale.
The rupiah, however, is set to snap its fourth weekly gain to post a loss of about 0.4%.
Investment flows are being diverted from the greenback to emerging market currencies on prospects that a trade deal would be implemented despite the coronavirus disruption.
Meanwhile, the Thai baht firmed 0.4% after the country reported fewer number of fresh coronavirus cases, prompting Southeast Asia's second-largest economy to allow some businesses to re-emerge from the lockdown.
The baht, which has so far been the worst performing currency in the region this year, is poised to post its fifth straight weekly gain.