Sim Moh Siong, FX strategist at Bank of Singapore, said increasing fear of a global slowdown has generated hopes the Fed "might step up to the plate in providing more rate cuts". The Fed's next policy meeting is at the end of October. On Thursday, the Thai baht strengthened most among regional currencies, tacking on 0.3%.
A current account surplus and strong foreign reserves have helped the baht, Asia's best performing currency, but extended strength in the unit has put pressure on the export-reliant economy and prompted central bank moves to curb inflows. Malaysia's ringgit and the Philippine peso both advanced 0.2% against the greenback. Singapore's dollar inched up 0.1%. The city-state is especially sensitive to trade war frictions, and analysts increasingly see substantial policy easing ahead.