Hong Kong, 5 September 2026 – Asian currency gains are entering a more demanding phase as investors weigh the prospect of tighter policy in Japan against uncertainty over US interest rates and uneven regional growth. The recent advance has improved sentiment toward local assets, but the next move will depend on whether central-bank decisions validate market expectations already embedded in exchange rates.
A broad index of Asian currencies has reached levels last seen in October 2024, supported by shifting rate assumptions and renewed demand for regional assets. The Japanese yen delivered one of the strongest moves, rising about 2% on Thursday and heading for a weekly gain near 2.5%. It traded around ¥155.25 to ¥155.71 per US dollar in recent sessions.
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