(19 February 2026 – Asia) Currencies across Asia are increasingly polarised as the Malaysian Ringgit and Thai Baht strengthen in contrast to the Philippine Peso and Indonesian Rupiah trading sharply weaker.
Bullish trading underpinning the Malaysian Ringgit (MYR) pushed the currency to its strongest level in nearly two decades in comparison to bearish positions on the Philippine Peso (PHP) driving the currency to a two‑year low according to Reuters.
Consistent buying support for the Thai Baht (THB) rose slightly in April and held through 2025 compared to Indonesia where short bets on the Rupiah (IDR) gathered greater weight since August and investors remained firmly bearish.
The MYR and THB are benefitting from shifts in investment and trading flows that have limited room for easing by their central banks, continuing to trade higher against the US dollar. Meanwhile the PHP and IDR have depreciated in value as political uncertainty takes a toll on both currencies.
Positions on the Singapore Dollar (SGD) ticked higher with traders actively using the currency as a regional defensive proxy.
“The Ringgit and Baht are strengthening significantly against the US dollar, driven by favourable investment and trade flows, a weaker greenback, improving investor sentiment, and limited room for monetary easing from their central banks. The ringgit, in particular, is hitting multi-year highs, the strongest in over seven years” commented Ænon Managing Partners and Founder, Franck da Silva.
“In contrast, the Rupiah and Peso continue to depreciate, weighed down by domestic political challenges, fiscal concerns and questions around central bank independence.”
“This polarisation, highlighted in this excellent Nikkei Asia analysis, in is set to create ongoing turbulence across ASEAN through 2026, directly impacting export competitiveness, cross-border trade, and investment decisions in the region.”
How are CFOs and treasurers managing rising currency volatility across the region?
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