The exchange rates of most major Asian currencies came under pressure against the US dollar in trading on Friday, August 1, 2025.

According to data from Refinitiv, as of 09:25 AM WIB on Friday, only the Vietnamese dong remained unchanged against the greenback. Meanwhile, nearly all other Asian currencies weakened, indicating widespread pressure across the region's currencies.

The South Korean won recorded the steepest drop, falling by 0.47% versus the US dollar. It was followed by the Taiwanese dollar and the Malaysian ringgit, which each declined by 0.43% and 0.40%, respectively. The Indonesian rupiah was not spared either, sliding by 0.30%, making it one of the region's worst-performing currencies for the day.

Additionally, the Philippine peso and Thai baht also came under pressure, weakening by 0.32% and 0.18%, respectively. Meanwhile, the Chinese yuan and Indian rupee experienced more moderate declines of 0.11% and 0.08%.

On the other hand, the Cambodian riel saw the slightest decline of 0.05%, while both the Japanese yen and Singapore dollar eased by 0.03% each.

Stronger US Dollar Behind the Pressure

The continuous appreciation of the US dollar, which has now entered its sixth consecutive day of gains, is the primary driver behind the pressure on regional currencies.

The US Dollar Index (DXY) closed higher by 0.15% at 99.96 on Thursday (July 31, 2025), and climbed past the 100 mark today, reaching its highest level since late May 2025. This trend reflects rising demand for the US dollar.

A key reason behind the dollar's strength is the aggressive trade stance taken by US President Donald Trump, who has once again escalated global trade tensions. Trump announced the implementation of a 10% global tariff and imposed retaliatory import duties of up to 41% on countries that lack formal trade agreements with the United States.

In addition, he introduced a 40% tariff on goods suspected of engaging in transshipment practices, which involve rerouting exports to avoid existing tariffs.

These measures have sparked market concerns over a broader trade war escalation, prompting investors to flock to the US dollar as a safe-haven asset.