Asian currencies collectively rise, global funds begin to flow towards Asian bonds.

This week, the US dollar index, which measures the dollar against six major currencies, continued to decline, while Asian currencies, including the renminbi, experienced a rare collective surge. In the first week of May, currencies in the Asia-Pacific region, including the renminbi, Hong Kong dollar, Japanese yen, and Singapore dollar, all rose against the US dollar. During the same period, the MSCI Emerging Markets Currency Index rose by 1.5%. In Asia, trading without using the US dollar has become a trend. Economist Stephen Jen pointed out that last year, the US economy showed temporary improvement, leading to a sharp increase in the US dollar. However, in recent weeks, signs of economic weakness and concerns about trade tensions have spread, undermining confidence in the US dollar. Its trend is consistent with the "US dollar smile curve" framework. Additionally, global funds are starting to flow towards Asian bonds due to concerns that the US's so-called "tit-for-tat tariffs" could trigger an economic recession.