There will continue to be “dollar-Asia upside across the board, but some more than others,” said Alvin T. Tan, head of FX strategy at the Royal Bank of Canada in Singapore. US trade protectionism, if it materialises, will be a “huge game-changer.”
Asian currencies fell to a two-decade low, as the dollar remains buoyed by robust US growth and President-elect Donald Trump’s tariff-hike vows.
The Bloomberg Asia Dollar Index slipped to as low as 89.0409 on Monday, hitting its lowest in data going back to 2006. Asian currencies have been swept aside by the dollar’s broad gains due to US Federal Reserve (US Fed) officials’ cautious tone on its interest rate path and investors’ bets that Trump’s tariffs could lead to inflationary pressures.
