BENGALURU: Asian currencies, led by the Malaysian ringgit and Indonesian rupiah, recorded slight gains on Friday, as regional equities also strengthened, with investors assessing US President Donald Trump’s tariff threats as largely rhetoric.
Some traders view the impact of Trump’s tariffs on growth as temporary, with new tariffs on Canadian and Mexican imports delayed, while a 10% tariff on Chinese imports and levies on global steel and aluminium have been implemented
The rupiah rose as much as 0.3% against the dollar, while the ringgit rose 0.2% to a two-week high. The MSCI gauge of emerging market currencies added 0.2%, hitting its highest in over three months.
The US dollar index, that measures the currency against six major counterparts, on Thursday touched its lowest for 2025 at 106.29 and was last at 106.44. The US dollar was set for a third weekly drop in a row as bulls who had built up big long positions in anticipation of a trade war have backed off while Trump equivocates about tariffs.
Markets appear to have become overall immune to tariff headlines, waiting for a firmer plan, which is now expected to come closer to April, analysts at Barclays said in a note.
“Risk sentiment among the EM investors seemed to have turned better this week, but we wait for more clarity for a more fundamental recovery.”
Meanwhile, this week, Singapore’s Straits Times Index rose by 1.3% and is poised for its fourth consecutive week of gains, driven by strong earnings from United Overseas Bank and Singapore Airlines, which enhanced the positive sentiment from the promising 2025 budget.
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