The latest data from the forex market indicates that bulls are massively buying up on Asian currencies in 2025. There are long bets on Taiwan’s dollar which is the highest since 2020. The South Korean won bets have also turned bullish with a 2.5-year high. The Chinese yuan’s long positions are also on the rise and only the Indian rupee is receiving bearish sentiments.
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This is the strongest investment in Asian currencies in many years making Taiwan’s dollar, South Korean won, and the Chinese yuan promising investments. Bets on the Chinese yuan rose after the White House provided no clarity on the US-China trade talks. The sparring events have left the markets yearning for more details on how the deals will be implemented.
Asia Currencies Taiwan Dollar & Korean Won Rise Double-Digits
The Taiwan dollar is up nearly 12% year-to-date while the South Korean won is up close to 9% YTD. The Chinese yuan is up 1.6% against the US dollar making Asian currencies chart a different course in 2025. The currency markets have seen major changes this year with several leading currencies coming out at the top of the charts.
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“In an environment where we are looking for the US economy to slow, the Fed to cut, and a Trump administration pursuing various protectionist measures, cyclical factors, and structural factors are aligned to keep the USD on a downtrend,” said Fiona Lim, senior FX strategist at Maybank to Reuters. This made Asian currencies prime investments as the Southeast region benefitted from the developments.
Asian currencies are positioned for better returns as huge investments have been poured into their fold. Central banks of emerging economies have taken concrete steps to benefit from the rising market positions. The Taiwan dollar and South Korean won are projected to rally further while the Chinese yuan could face challenges.