Asian currency exchange rate revaluation becomes a new market theme, possibly affected by US tariff policy

Odaily News Some Asian currencies have surged since Friday as investors pondered a revaluation tied to U.S. tariff threats, a turnaround that caught traders off guard and triggered exaggerated moves. The depreciation theme earlier this year has shifted to a scenario where emerging market currencies could be guided toward appreciation to meet U.S. trade demands.
The Taiwan dollar has gained 8.5% against the U.S. dollar since Thursday. The sudden shift in market sentiment is based on the view that Asian countries may be willing to stimulate the appreciation of their currencies, making U.S. imports more attractive while weakening the competitiveness of their exports, in exchange for easing harsh U.S. trade tariffs. Buffett's warning over the weekend may also have put pressure on the dollar. (Reuters market analyst)