Asian Currencies Edge Lower as the Dollar Holds Firm Ahead of Trump’s Tariffs

Most Asian currencies slipped on Monday while the U.S. dollar maintained its strength ahead of anticipated U.S. tariffs set to take effect on April 2. The U.S. Dollar Index, which measures the greenback against a basket of major currencies, rose 0.1% to 104.16, recovering from recent losses and reaching over a two-week high on Friday.

Key Market Developments

• Tariff Uncertainty:
  Reports indicate that President Donald Trump will implement a more selective approach to reciprocal tariffs—targeting a specific group of countries rather than imposing broad sectoral levies. This narrower focus is expected to impact about 15% of nations with significant trade deficits with the U.S., often referred to as the “dirty 15.” Such targeted tariffs are raising concerns about potential volatility in global trade, especially among major Asian exporters like China, Japan, India, and Vietnam.

• Currency Movements:
  With trade-sensitive currencies under pressure, investors are bracing for further fluctuations as they await detailed policy announcements.

  • The Chinese yuan in both onshore (USD/CNY) and offshore (USD/CNH) pairs inched 0.2% higher.

  • The South Korean won (USD/KRW) and Singapore dollar (USD/SGD) rose modestly by 0.3% and 0.2% respectively, while the Indonesian rupiah (USD/IDR) jumped 0.5%.

  • In contrast, the Indian rupee (USD/INR) slipped slightly by 0.1%.

These currency movements reflect a cautious market reaction to the evolving trade landscape as investors weigh the potential economic impact of further U.S. tariff adjustments.

Leverage FMP APIs for Real-Time Forex Data

To track these developments and monitor the impact of changing tariff policies on global currency markets, investors can utilize the following Financial Modeling Prep APIs:

✅ Forex Daily API
Access up-to-date daily forex data to track fluctuations in key currency pairs amid evolving trade policies.

✅ Forex WebSocket API
Stay connected to real-time currency market movements and updates as the U.S. tariff news continues to influence global forex dynamics.

Conclusion

While the U.S. dollar remains firm, the decline in Asian currencies underscores growing market caution as investors await further details on Trump's selective tariff measures. With key Asian currencies reacting to global trade uncertainties, leveraging real-time data from the Forex Daily and Forex WebSocket APIs can help investors navigate this volatile environment.