Asian currency markets are calm, the US dollar is strengthening, traders assess the impact of Trump's new tariffs

2026-02-24 05:53:59

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Investing.com - On Tuesday, most Asian currencies traded within narrow ranges, with the US dollar remaining resilient as investors assess the impact of new US tariffs.

The US dollar index rose 0.2% during Asian trading hours, after closing roughly flat overnight, recovering earlier losses.

As of 23:54 Eastern Time (04:54 GMT), US dollar index futures also increased by 0.2%.

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Traders assess the impact of Trump’s tariffs

Market participants remain cautious due to uncertainties about the durability and scope of the new import tariffs, which have suppressed risk appetite.

After the U.S. Supreme Court rejected earlier emergency tariff plans, President Donald Trump announced a 15% global tariff on imported goods.

Trump also warned that countries attempting to “play tricks” in trade negotiations could face higher tariffs, fueling concerns that global trade tensions may escalate again.

The new round of tariffs has pressured regional currencies, especially those reliant on exports and sensitive to changes in global demand and supply chains.

Analysts at Mitsubishi UFJ Financial Group stated in a report: “We still believe that countries will generally adhere to trade agreements, although some may pause to reassess the situation.”

The Japanese yen weakened slightly against the dollar, with the USD/JPY currency pair rising 0.4%, as market expectations of imminent tightening by the Bank of Japan diminished.

Other currencies remained relatively flat, with the USD/KRW pair rising 0.1%.

The USD/SGD pair increased by 0.1%, while the USD/INR remained unchanged.

The AUD/USD pair rose 0.1%.

China maintains unchanged loan prime rates

On Tuesday, the onshore RMB (USD/CNY) exchange rate fell 0.2%.

The People’s Bank of China kept the 1-year and 5-year loan prime rates unchanged, in line with expectations.

The stable policy stance highlights Beijing’s tendency to adopt moderate support measures to balance growth stability and financial risk control.

Chinese financial markets reopened on Tuesday after the Lunar New Year holiday.

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