Asia’s Currency Crisis: Won Hits 2009 Lows Amid Global Market Jitters

Asian currencies slipped in early Tuesday trading, with the South Korean won emerging as the region’s top loser after a wave of risk aversion swept through global markets. The downturn follows a sharp sell-off in U.S. stocks and bonds, triggered by President Donald Trump’s escalating criticism of Federal Reserve Chair Jerome Powell and renewed concerns over the central bank’s independence.

The won led declines as investors ramped up short bets on Asian currencies, reflecting growing anxiety over intensifying U.S. trade tariffs and the prospect of a prolonged global trade conflict. The bearish sentiment was further fueled by fears that Trump may be preparing to remove Powell for not cutting interest rates more aggressively, adding to the uncertainty.

Other Asian currencies, including the Indian rupee, Malaysian ringgit, and Thai baht, also faced downward pressure, though the rupee has recently marked the worst performance among its peers for the year. Meanwhile, the dollar steadied after touching a 15-month low, and gold surged to record highs as investors sought safety.

With volatility gripping markets and trade tensions showing no sign of easing, analysts warn that Asian currencies could remain under pressure in the near term.

Source: Moneycontrol