Asian currency exchange rate revaluation becomes a new market theme, possibly affected by US tariff policy

Odaily Planet Daily News As investors ponder the revaluation of exchange rates related to the threat of US tariffs, some Asian currencies have surged since last Friday. The situation changed so quickly that traders were caught off guard and triggered exaggerated movements. The devaluation theme earlier this year has shifted to the possibility that emerging market currencies may be guided to appreciate in order to cater to US trade requirements. The New Taiwan dollar has risen 8.5% against the US dollar since last Thursday. The sudden shift in the market theme is based on the view that Asian countries may be willing to stimulate the appreciation of their currencies, making US imports more attractive while weakening the competitiveness of exports, in exchange for the United States to ease harsh trade tariffs. Buffett's warnings over the weekend may also put pressure on the US dollar. (Reuters market analyst)