BUSINESS – The U.S. dollar lost ground across global markets in recent trading, with Asian currencies showing divergent performances. The Japanese yen surged strongly, while the Indonesian rupiah faced renewed pressure despite central bank intervention.
In Japan, the yen advanced on the back of growing speculation that the Bank of Japan may move toward tightening its long-standing loose monetary stance. Market watchers noted that rising inflation and steady wage growth have increased the likelihood of an interest rate adjustment. As a result, the yen has attracted strong investor support. According to Reuters, the currency also benefited from safe-haven demand amid concerns about U.S. Federal Reserve independence following political developments in Washington.
Meanwhile, the Chinese yuan gained momentum, climbing to its firmest level since the 2024 U.S. presidential election. Analysts linked this rally to supportive factors, including capital inflows, resilience in Chinese equities, and export-related hedging strategies. The Financial Times reported that Beijing’s policies have added further stability to the renminbi.
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In contrast, the Indonesian rupiah has been under strain. It slipped to around Rp16,560 per dollar, prompting Bank Indonesia to step up its market interventions. The central bank declared that it aims to guide the currency closer to Rp16,300 per dollar, deploying measures in both domestic and offshore markets. “Bank Indonesia continues to be in the market to ensure the rupiah remains stable and in line with its fundamentals,” the central bank stated, as cited by Reuters.
Regional analysts observed that the rupiah had previously led Asian currency gains earlier in the year due to expectations of U.S. interest rate cuts and capital inflows. However, recent political unrest has weighed on market confidence, making the currency more vulnerable compared to its regional peers.
Overall, Asian currencies remain sensitive to U.S. monetary signals. The yen and yuan have capitalized on current shifts in investor sentiment, while the rupiah’s latest slide underscores the challenges faced by emerging-market currencies in maintaining stability amid global and domestic pressures.
