Currencies

Stay informed with free updatesSimply sign up to the Currencies myFT Digest -- delivered directly to your inbox.After a frankly insane few days, the Taiwanese dollar has fallen back past the 30-per-US dollar mark again. But SLJ Eurozon’s Stephen Jen reckons that its recent rollercoaster is a harbinger of a wider, violent repricing of Asian currencies. Or as the hedge fund manager puts it in his latest note to investors: . . . We continue to believe the risks of investors being blindsided by such a non-linear sell-off in the dollar continue...

Global rice prices, which have tumbled to multi-year lows, are unlikely to fall further with top exporter India’s currency firming, but bulging Indian stockpiles and a bumper Asian crop will cap any rebound this year, industry executives say. While lower rice prices will benefit price-sensitive consumers in Africa and other regions, they are likely to further squeeze the already meagre earnings of farmers across Asia, which produces nearly 90 per cent of the world’s rice. The market slumped in April, a month after Delhi removed the last of its export curbs on...

Singapore - The US dollar may face a US$2.5 trillion (S$3.2 trillion) “avalanche” of selling as Asian countries unwind their stockpile of the world’s reserve currency, according to currency analyst Stephen Jen. Asian exporters and investors may have amassed an “extremely large” pile of dollars through the years, widening the region’s trade surplus with the United States, Eurizon SLJ Capital’s Mr Jen and Ms Joana Freire wrote in a note on May 7. As a US-led trade war deepens, some Asian investors might repatriate chunks of funds or ramp up...

The Hong Kong dollar’s funding costs plunged the most since 2008, as the monetary authority’s intervention to defend the currency peg helped boost liquidity in the financial system.The one-month Hong Kong Interbank Offered Rate declined 58 basis points to 3.08 per cent on Wednesday (May 7), the most since 2008, according to Bloomberg calculations. Easing interest rates will help reduce the appeal of purchasing the Hong Kong dollar and moderate appreciation pressure. The Hong Kong Monetary Authority (HKMA) stepped into the market to sell HK$129.4 billion (S$167 billion) worth of local...

This is CNBC's live blog covering Asia-Pacific markets. Asia-Pacific stocks mostly climbed after China's central bank and financial regulators announced sweeping plans to cut key interest rates in an effort to shore up growth in the face of trade worries. Hong Kong's Hang Seng index rose 0.5% while mainland China's CSI 300 climbed 0.61% to close at 3,831.63. Japan's benchmark Nikkei 225 lost 0.14% to close at 36,779.66 while the Topix rose 0.31% to close at 2,696.16. South Korea's Kospi added 0.55% to close at 2,573.8 while the small-cap Kosdaq lost...

South-east Asia’s exporters are facing a double whammy: a fresh surge in regional currencies in May and the looming end of US President Donald Trump’s 90-day tariff pause in July. Export-oriented economies facing potential new US levies and already grappling with structural competitiveness issues are especially at risk, warned experts.Thailand stands out on all three counts as among the most vulnerable across the region to sharp currency spikes, which will certainly hurt exports over time, said MUFG Bank’s senior currency analyst Michael Wan.May’s monetary rally pushed several major Asean currencies...

BEIJING – China signalled that it is not ready to let the yuan strengthen dramatically against the US dollar, helping restore calm to Asia’s foreign-exchange market after days of extreme volatility. The People’s Bank of China (PBOC) kept its daily reference rate for the yuan steady as it returned from a public holiday, pushing back against a recent rally in the offshore version of its currency – and making clear to traders that the dollar’s rout in Asia will not all be one-way traffic. The country said it would hold...

Asian markets are expected to open cautiously on May 7 as investors await a crucial policy decision from the US Federal Reserve and monitor developments in global trade negotiations. Market sentiment remains fragile amid mixed economic data from China, volatile currency movements, and ongoing geopolitical tensions in South Asia. The region’s equities may see range-bound trading with pockets of volatility as traders balance optimism around easing tariffs with concerns over inflation and interest rate trajectories.On May 6, Asia-Pacific markets ended on a mixed note. Mainland China’s CSI 300 index rose...

Wed May 7, 2025 12:00 AM Last update on: Wed May 7, 2025 12:00 AM

USD remains offered across the board as investor flows shift sharply into Asia, following a record 6% two-day surge in the Taiwan dollar (TWD) and strong gains in the Korean won (KRW), Chinese yuan, and Thai baht (THB). Markets are reassessing US asset exposure amid weakening U.S. growth and erratic trade policies, with the greenback under sustained pressure.Asian selling continues, amplified by speculation that Taiwan and other regional economies may be allowing currency appreciation to ease trade tensions with Washington. The Singapore dollar (SGD) and Malaysian ringgit (MYR) have also...