Most Asian currencies edged higher on Monday while the U.S. dollar retreated, as investors assessed the implications of a U.S. Supreme Court ruling against President Donald Trump’s earlier tariff programme and his subsequent move to reimpose levies under a different statute.
The US Dollar Index slipped 0.4% in early Asian trade, while US Dollar Index Futures also fell 0.4% as of 05:04 GMT.
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Asia FX edges up amid US trade uncertainty The Japanese yen's USD/JPY pair fell 0.5%, with the currency aided by safe-haven appeal.
The South Korean won's USD/KRW edged down 0.2%, while the Chinese yuan's offshore USD/CNH pair ticked 0.1% lower.
Last week, the U.S. Supreme Court ruled that Trump’s sweeping tariffs introduced under emergency powers were not legally justified, striking down a key pillar of his trade agenda. Markets initially interpreted the decision as a potential easing of trade frictions and a positive signal for global growth.
In response, President Donald Trump announced a new 10% global tariff on imports for 150 days under Section 122 of U.S. trade law, before raising the rate to 15%, the maximum allowed under that provision.
This complicated the outlook for Asian exporters, many of which rely heavily on U.S. demand. Countries such as South Korea, Japan, and several economies had previously negotiated trade arrangements or tariff exemptions with Washington.
Regional equity markets were mixed, reflecting lingering caution about the impact of higher U.S. tariffs on supply chains and capital flows.
Fed caution persists after US data Adding to market caution were U.S. economic releases last week showing slower economic growth and persistent inflation, further clouding the outlook for Federal Reserve interest rate policy.
The combination of soft growth and sticky inflation has pushed back expectations for meaningful rate cuts this year.
Back in Asia, the Indian rupee's USD/INR pair traded largely flat, while the Singapore dollar's USD/SGD ticked down 0.1%.
The Australian dollar's AUD/USD pair edged 02% lower.
