The Taiwan dollar led a rally in Asia-Pacific currencies on Monday as the U.S. dollar weakened across the region. Taiwan’s currency continued to rise, hitting three-year highs of 28.93, appreciating 5.77% against the greenback.
Key Currency Movements
The offshore Chinese yuan strengthened 0.21% to 7.196, marking its strongest level since November 2024, while the onshore yuan traded flat. Other regional currencies also saw gains, with the Australian dollar appreciating 0.62% to 0.648, and the Singapore dollar gaining 0.62% to 1.289 after the ruling People’s Action Party secured a strong mandate.
Japanese Yen and Indian Rupee Strengthen
The Japanese yen, which had weakened the previous week, appreciated 0.69% to 143.93. Similarly, the Indian rupee strengthened by 0.27% to 84.26.
Asian Market Reactions to Political Events
The Australian market fell 0.97% as Prime Minister Anthony Albanese returned to power, marking his second consecutive term. Despite this, most Asian markets were closed for holidays.
The Taiwan market saw a 1.23% drop, while Indian markets performed better. The Nifty 50 gained 0.47%, and the BSE Sensex rose 0.37%.
Adani Enterprises and Indian Investments
Shares of Adani Enterprises surged by 7.03%, and other Adani stocks saw impressive gains following reports of meetings between Indian billionaire Gautam Adani and U.S. President Donald Trump’s administration. These talks are reportedly moving towards a resolution of criminal charges related to an overseas bribery probe.
Mark Mobius, chairman of Mobius Emerging Opportunities Fund, highlighted India’s thriving investment environment, citing the movement of manufacturing from China and India’s youthful, tech-savvy population as factors driving growth.
Growth in Southeast Asia
Indonesia’s economy grew at a slower pace, expanding 4.87% year on year in Q1, falling short of expectations and marking the slowest growth since 2021. Meanwhile, oil prices fell after OPEC+ agreed to increase production for a second consecutive month, with Brent crude down 1.26% at $60.52 and WTI crude falling 1.34% to $57.52 per barrel.
Global Market Overview
U.S. futures also dipped, reversing strong gains seen on Wall Street last week. The S&P 500 ended Friday’s session 1.47% higher, marking its longest winning streak since November 2004. The Dow Jones and Nasdaq Composite also showed positive performance, increasing by 1.39% and 1.51%, respectively.