The Thai baht and Chinese yuan experienced notable declines today, driven by concerns over potential US tariffs and weak economic indicators. The baht fell by 0.6%, marking the steepest drop among Asian currencies, while the yuan slipped by 0.4% due to fears surrounding impending tariffs and slowing manufacturing in China.
These developments have raised apprehensions about global financial stability, with particular attention on the Federal Reserve, which is expected to maintain current interest rates. This uncertainty has affected regional stock markets, with Malaysia's index decreasing by 0.6%, India's Nifty 50 dropping by 0.8%, and the Philippine Stock Exchange Index plummeting by 1.6%, reaching its lowest level in over seven months.
Investor sentiment remains cautious, influenced by both tariff threats and disappointing corporate earnings. Trading activity has also been subdued in regions such as South Korea, Indonesia, and Taiwan due to the Lunar New Year.
Despite the current challenges, Thailand projects an economic growth rate exceeding 3% for the year, indicating some resilience. Additionally, the Bank of Singapore is expanding its operations in Dubai, signaling a strategic pivot towards the Middle East. China's advancements in artificial intelligence, led by companies like ByteDance and DeepSeek, reflect its long-term ambitions in the tech sector, potentially reshaping the global landscape.