Some analysts have pointed to Beijing’s campaign against deflation as a big driver of the rally. Others are more cautious, however, saying the campaign will only deliver higher earnings in some sectors.

The yuan’s share in global payments fell to 2.88% in June, its lowest in two years, compared with nearly 47% for the US dollar, according to SWIFT.

China has blocked crypto activity since 2021, but Washington’s policy shift under Trump and growing international adoption may be pushing Beijing to reassess its stance.

Investors took reassurance from the Trump administration’s willingness to exempt the semiconductor industry from onerous tariffs if companies commit to investing in the United States.

Released on Tuesday, the proposal seeks to establish a unified multidimensional fee market, allowing users to specify a single aggregate maximum fee for multiple resources. 

Between Apr 9 and Jul 24, the STI surged 25.9 per cent, rebounding strongly from earlier declines due to Trump’s tariff announcements.

The action marks the first major crypto-friendly policy shift under new SEC Chair Paul Atkins.

Sectors with high exposure to USD-denominated debt—such as home appliances, transportation, non-ferrous metals, and electronics—are likely to receive the biggest earnings boost from a weaker dollar

Powell has said that he expects inflation to increase this summer as a result of tariffs, which is seen keeping the US central bank on hold until later this year.

Overall, the team maintains its 2025 GDP growth forecast of 2 per cent, higher than the consensus of 1.7 per cent, at the top end of the official forecast range of 0 to 2 per cent.

“We think that there could be further volatility to come, although we also retain our conviction on our longer-term weaker USD view.

Indexes added to losses after Mr Trump announced the tariff rates against Japanese and South Korean imports, due to take effect on Aug 1.