Asian currencies weaken as markets wait for U.S. trade policy clarity, uncertainty remains high.

Asian currencies and the U.S. dollar fell as markets awaited clarity on U.S. trade policy. Trump’s tariff deadline extension brought temporary relief, but uncertainty around trade deals and potential 70% tariffs kept currency markets volatile. Dollar Index Futures dropped 0.1% amid geopolitical tensions and the Fed’s dovish stance.

Trump’s formal tariff letters to global partners outlined new trade terms, with BRICS countries facing an additional 10% tariff. Regional currencies weakened, with USD/KRW, USD/THB, USD/MYR, USD/CNY, and USD/CNH all strengthening. The Australian dollar faced losses on expectations of an RBA rate cut to 3.60%.

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With ongoing uncertainty surrounding tariffs and trade deals, Asian currencies may remain under pressure. Central banks like the RBA are expected to maintain a dovish stance, contributing to market volatility. Traders will closely monitor signals from U.S. officials and Asian central banks for guidance amidst the fluctuating policy landscape.