A surge in Asian currencies, fuelled by speculation the White House is close to finalising its first trade deal with a country in the region, has sent the Australian dollar rocketing to its highest level in five months.

Traders initially speculated that Taiwan was on the brink of a bilateral agreement with Washington, which triggered a 6 per cent spike in the Taiwanese dollar before authorities denied the allegation. Meanwhile, South Korea’s won had its biggest two-day rally in over a decade and China’s offshore yuan touched a six-month high.