Asian currencies gain as investors turn from dollar and rupee; baht among standout plays

[SINGAPORE] Fresh capital is piling into select Asian currencies – from the New Taiwan dollar and Singapore dollar to the Malaysian ringgit – on the back of rate-cut bets, a persistently weak greenback and supportive domestic conditions, while India’s rupee has slipped amid fraying India-US ties.

At the forefront of Asian gains against the greenback is the New Taiwan dollar, which has rallied 8.3 per cent year to date as at Tuesday (Aug 19), albeit down from the 12 per cent surge it posted in July. Its latest advance places it alongside the Singapore dollar and the ringgit.

The safe-haven Singapore currency has outperformed South-east Asian peers with a 6 per cent climb against the US dollar since end-2024. It is followed by the high-beta ringgit that has gained more than 5 per cent to around 4.2 to the US dollar from 4.5 in end-2024.