The dollar struggles to recover after Trump’s comments fuel a selloff, while Asian markets rally on tech strength and investors await key Fed guidance and earnings reports.
HONG KONG: The dollar struggled to recover on Wednesday after another selloff, fuelled by former US President Donald Trump’s suggestion he was content with the currency’s recent decline.
Most Asian equity markets extended their rally, buoyed by strength in technology shares.
Trump told reporters he thought the dollar’s performance was “great” and that he wanted it to “seek its own level”.
His comments came as the greenback hit its weakest level against the euro in four-and-a-half years and a two-and-a-half-month low against the yen.
The dollar also sank against the pound, South Korean won and Chinese yuan.
Observers said unease about Trump’s latest tariff threats have also dented faith in US assets and weighed on the currency.
Traders are closely watching the Federal Reserve’s latest meeting for guidance on interest rates.
Foreign exchange analyst Win Thin said the dollar weakness “bears watching” as it often leads in showing market discomfort with a country’s policies.
Equity markets performed well in Asia after the S&P 500 hit another record high in New York.
Seoul’s KOSPI was among the best performers, hitting another all-time peak as chipmakers rallied.
Tokyo, Hong Kong, Shanghai, Taipei, Manila, Mumbai and Bangkok also posted gains.
Jakarta’s market plunged more than 8%, its heaviest fall in nine months.
The drop followed index compiler MSCI calling on regulators to look into ownership concerns in Indonesian stocks.
Market heavyweights PT Bumi Resources and PT Petrosea lost around 15%.
MSCI cited “ongoing opacity in shareholding structures” as a fundamental investability issue.
Sydney, Singapore and Wellington markets dipped.
Traders are awaiting earnings this week from Wall Street giants Microsoft, Meta, Tesla and Apple.
Market analyst Tony Sycamore said these results will provide critical insights into the trajectory of the artificial intelligence trade.
He added that forward guidance will be key, alongside scrutiny of margins and capital expenditure projections.
In company news, SoftBank jumped almost 6%.
The Wall Street Journal reported it is in talks to pump an additional USD 30 billion into ChatGPT developer OpenAI.
