Most Asian currencies moved little on Wednesday, while the dollar saw some strength in anticipation of U.S. President Donald Trump’s “liberation day” tariffs, which will be unveiled later in the day.
Regional currencies were nursing weeks of rangebound performance as uncertainty over Trump’s tariffs kept traders largely to the sidelines, especially amid speculation over their scope and economic impact.
The Australian dollar was an outlier, strengthening sharply on some positive building approvals data. The Aussie was also boosted by the Reserve Bank of Australia keeping interest rates unchanged on Tuesday.
The Japanese yen, which had initially benefited from increased safe haven demand, retreated against the dollar this week, while the Chinese yuan tread water.
Dollar holds some gains as Trump tariffs approach
The dollar index and dollar index futures steadied in Asian trade on Wednesday after logging some overnight gains.
Focus was squarely on Trump’s plans for reciprocal tariffs against major U.S. trading partners, as well as his plans to impose universal tariffs on all U.S. imports.
Treasury Secretary Scott Bessent said Trump will impose the maximum level of tariffs later in the day, and that the targeted countries can bring down the tariffs by meeting Trump’s demands- specifically that they lower tariffs on all imports of U.S. goods.
Reports showed that Trump also intends to impose a 20% duty on all imports to the U.S.
The U.S. President is set to reveal his tariffs during an event scheduled for 16:00 ET (20:00 GMT).
