Major Asian emerging currencies traded in a tight range on Thursday against the greenback, as the shock effect of a U.S.-triggered global trade war wore off, while the Thai baht eased after domestic inflation data came in line with estimates.
Thailand’s currency and the Philippine peso were trading 0.3% and 0.4% lower, respectively, while the Malaysian ringgit shed 0.1%.
Currency markets in Asia, though, appeared to be looking past the tumult in global financial markets this week caused by U.S. President Donald Trump implementing his tariff plans and China announcing retaliatory action.
“While the collective in the market remains highly cognizant that headline risk is still very much present, we see further evidence of tariff fatigue, with market players re-positioning and adding risk to portfolio exposures,” said Chris Weston, head of research at Pepperstone.
Other currencies such as the South Korean won and Singapore dollar were also subdued, trading 0.3% and 0.1% lower, respectively.
“There has been a series of tit-for-tat responses between the U.S. and China.” said Christopher Wong, currency strategist at OCBC Bank.
“That said, responses appeared measured, and tensions are contained for now.”
Trump tariff delays boost Asian currencies and stock markets
Thailand’s headline consumer price index inched 1.32% higher in January from its year-ago levels, but was within the central bank’s target range of 1% to 3% for the second consecutive month.
Indonesia said on Wednesday its economy grew at the slowest pace in the last three years and consumption was tepid, raising hopes of further stimulus measures and lower policy rates at its February 19 meeting.
The Indonesian rupiah was trading 0.3% lower while stocks in Jakarta dropped 1.6%, hitting their lowest level since June 26.
Analysts at Mandiri Sekuritas expect 2025 to be another year of stable growth in Southeast Asia’s largest economy, reflecting sustained domestic demand to be offset by lower net export contribution coming from a global economic slowdown.
Asian stocks were mostly upbeat on Thursday, with export and chip-focused markets in Taiwan and South Korea leading the gains, tracking Wall Street moves. Shares in Taipei added 0.6% while those in Seoul were trading 0.9% higher.
Technology stocks in Taiwan led the gains across local equities after chip-major Nvidia jumped more than 5% overnight.
The rally in Taiwan stocks comes as investors continue to buy into the artificial intelligence frenzy, with MooMoo Australia market strategist Jessica Amir saying that the second AI wave is sweeping markets higher.
Markets in Singapore and Malaysia gained 0.6% and 0.1%, respectively, while shares in the Philippines fell over 1%.
