The Reuters Bureau reports that Asia’s move away from the U.S. dollar is accelerating, driven by strategic shifts in central bank reserves, corporate financing, and geopolitical caution.

In recent weeks, the Taiwan dollar has climbed by over 10% against the U.S. dollar, triggering a notable rally in regional currencies such as the Singapore dollar, South Korean won, Malaysian ringgit, Chinese yuan, and Hong Kong dollar. Analysts note this as a reversal of the post‑Asian crisis pattern where surplus Asian savings were funneled into U.S. Treasuries.

Observers point to investor fatigue with U.S. policy instability, including President Trump’s tariffs, which have rattled confidence in dollar‑denominated assets.

Major institutional moves have followed suit: Taiwan’s insurers and Hong Kong’s central bank are reducing dollar exposure; funds are unwinding dollar‑long positions; and global investment managers are redirecting capital away from dollar assets. This trend reflects diminishing confidence in U.S. dollar-denominated assets and highlights the accelerating pace of de-dollarization across Asia.

Still, some reserve managers insist this is a market repositioning rather than a formal change in FX policy. The question now is whether rare currency swings are a temporary correction or a deeper rerouting of regional capital flows.