Asian Currencies Hit 16-Month High on Weak Dollar, Yuan Gains

Asian currencies rose to a 16-month high on Wednesday, supported by a weaker dollar and steady yuan appreciation.

The Bloomberg Asia Dollar gained 0.2% to its highest level since October 2024. Emerging Asia’s currencies are benefitting from the so-called trade, with uncertainty over US tariffs and fiscal policies dimming the appeal of the dollar and US debt.

The Chinese yuan, the , has also in recent weeks as the central bank shows greater tolerance for gains amid firm exports. This in turn has buoyed currencies from South Korea, Taiwan, Malaysia and Thailand, given their close trade links with China.

Meanwhile, global investors have flocked to Asian companies such as TSMC and Samsung Electronics Co., key suppliers and innovators in the artificial intelligence race.

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