Executive Summary

Key insights and market outlook

Several Asian currencies weakened against the US dollar on Monday, January 5, 2026, amid rising global uncertainty and geopolitical tensions. The Indonesian rupiah depreciated 0.09% to Rp16,740 per USD, while other regional currencies such as the Singapore dollar and Korean won also saw declines. The US dollar's strength was driven by increased demand for safe-haven assets and geopolitical developments, including the US's actions towards Venezuela ¹

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Full Analysis

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Deep Dive Analysis

Asian Currencies Under Pressure as Global Uncertainty Intensifies

Regional Currency Dynamics

The Asian currency landscape experienced significant pressure on Monday, January 5, 2026, as multiple regional currencies weakened against the strengthening US dollar. The Indonesian rupiah closed at Rp16,740 per USD, representing a 0.09% depreciation from the previous trading day ¹

. Other Asian currencies followed a similar trend, with the Singapore dollar falling 0.08% to SGD1.28 per USD and the Korean won declining 0.22% to KRW1,447.76 per USD ¹.

Factors Driving Currency Movements

Several key factors contributed to the broad-based weakening of Asian currencies against the US dollar:

Global Uncertainty: Rising geopolitical tensions, particularly the recent developments in US-Venezuela relations, triggered a flight to safety, boosting the US dollar ²
Source 2
https://investasi.kontan.co.id/news/rupiah-terdepresiasi-awal-pekan-ini-proyeksi-pergerakannya-selasa-61
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US Monetary Policy Expectations: The release of the December FOMC minutes revealed a divided Federal Reserve, with some officials suggesting a pause in rate cuts, supporting the dollar's strength ³
Source 3
https://investasi.kontan.co.id/news/siang-ini-rupiah-melemah-ke-rp-16756-per-dolar-as-efek-konflik-as-venezuela
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Inflationary Pressures: Indonesia's inflation rate reached 2.92% in 2025, up from 1.57% in 2024, adding to currency market pressures ⁴
Source 4
https://pusatdata.kontan.co.id/news/rupiah-melemah-lagi-inflasi-tinggi-dan-isu-global-pengaruhi-nilai-tukar
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Market Outlook

Looking ahead to 2026, analysts anticipate that geopolitical factors will continue to dominate Asian currency movements. Key factors to watch include: