The US dollar weakens, Asian currencies rise slightly, US tariff uncertainty persists

LootboxPhobia · 2026-02-23T05:54:09+00:00

On Monday, Asian currencies generally rose slightly, and the US dollar retreated as investors assessed the impact of the Supreme Court's ruling on Trump's tariff plan. The US dollar index fell by 0.4%, and market expectations for easing trade tensions increased. Meanwhile, Trump announced new tariffs, complicating the outlook for exporters. US economic data showed a slowdown in growth, further influencing the Federal Reserve's interest rate policy expectations.

LootboxPhobia

2026-02-23 05:54:09

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Investing.com - On Monday, most Asian currencies edged higher, the US dollar retreated, and investors are assessing the impact of the U.S. Supreme Court’s ruling overturning President Trump’s early tariff plans and his subsequent move to reimpose tariffs under different regulations.

The US dollar index fell 0.4% in Asian morning trading. As of 05:04 GMT, US dollar index futures also declined by 0.4%.

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Asian Currencies Slightly Rise Amid US Trade Uncertainty

The USD/JPY currency pair declined 0.5%, supported by safe-haven demand.

The USD/KRW (South Korean won) slightly decreased by 0.2%, while the offshore USD/CNH (Chinese yuan) dropped 0.1%.

Last week, the U.S. Supreme Court ruled that Trump’s comprehensive tariffs implemented under emergency powers lacked legal basis, overturning a key pillar of his trade agenda. Initially, the market interpreted this decision as a potential easing of trade tensions and a positive signal for global growth.

In response, President Trump announced a 10% global tariff on imported goods under Section 122 of U.S. trade law, for 150 days, after which the rate would be increased to the maximum allowed under the law, 15%.

This has complicated prospects for Asian exporters, many of whom rely heavily on demand from the U.S… Previously, South Korea, Japan, and several other economies negotiated trade arrangements or tariff exemptions with Washington.

Regional stock markets were mixed, reflecting ongoing caution about the impact of U.S. tariff hikes on supply chains and capital flows.

Fed Maintains Caution Following U.S. Data Releases

Market caution was heightened by U.S. economic data released last week, showing slowing growth and persistent inflation, further clouding the outlook for Federal Reserve interest rate policy.

The combination of weak growth and sticky inflation has delayed market expectations for significant rate cuts this year.

Back in Asia, the USD/INR (Indian rupee) remained largely flat, while the USD/SGD (Singapore dollar) declined 0.1%.

The AUD/USD (Australian dollar) edged down 0.2%.

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