Investing Updates : Singapore dollar surges against US dollar as Asia currencies rally on trade hopes

Source : 

https://www.businesstimes.com.sg/companies-markets/banking-finance/singapore-dollar-surges-against-us-dollar-asia-currencies-rally-trade-hopes

Apple Intelligence : 

• Currency Performance: Singapore dollar surged by 0.6% against US dollar.

• Reason for Appreciation: Asian currencies rallied on hopes of a thaw in the US-China trade war and regional tariff deals.

• Year-to-Date Gain: Singapore dollar advanced by 5.3% in 2025.

• Currency Movement: Asian currencies, including the Japanese yen and Australian dollar, rose against the US dollar.

• Reason for the Rise: Concerns about the impact of US President Donald Trump’s tariff war on the US economy and the possibility of trade deals with other countries.

• Impact on Taiwan: The Taiwanese dollar surged to its highest level since the 2008 financial crisis, prompting concerns from exporters and prompting the central bank to consider intervention.

• Taiwan Dollar Appreciation: Exporters are buying Taiwan dollars due to expectations of currency appreciation to facilitate a US trade deal.

• Central Bank’s Stance: Taiwan’s central bank denies US requests for currency appreciation and aims to maintain stability.

• Asian Currency Speculation: Soaring Taiwan dollar fuels speculation that some Asian countries might strengthen their currencies for US trade concessions.

• Currency Outlook: Morgan Stanley is bearish on the dollar and bullish on the euro and yen.

• Reason for Dollar Weakness: US yield curve bull-steepening and investors hedging US investments.