Asian currencies weaken as the US dollar is strengthened after tax tariffs

Asian currencies weakened abruptly on Monday when the US dollar recovered after the president of the United States, Donald Trump Bofated tariffs In several countries during the weekend.

He dollar index – It measures the value of the green back against several important global currencies – increased 1.11% to 109.58.

The Chinese Yuan on the high seas 0.36% to 7,347 fell against the Back Green, after Trump’s imposition of a 10% tax in Chinese exports to the main investment banks of the United States. Yuan weaken to an average of 7.51 per dollar At the end of this year due to Trump rates.

Trump also imposed 25% tariffs on Canada and Mexico, two of the main commercial partners. Canada and Mexico Immediately promised retaliation measureswhile China seeks to challenge duties in the World Trade Organization.

Chinese markets are at a seven -day break until Tuesday for the Lunar New Year holidays.

India, which on Saturday announced its goal of reducing its fiscal deficit to 4.4% of GDP in its budget, SAW The fall of the rupee to a minimum record of 87,101 against the dollar, weakening 0.66%. The calls for a rate cut have been growing as the country’s growth has slowed. The lowest rates tend to weaken the coins.

He South Korea won depreciated 0.83% to 1,467.65.

He And in Japanese weakened 0.19% to 155.47 against the dollar. Its decrease was limited by the posture of the interest rate of the Bank of Japan. According to the reports, the vice governor of the BOJ, Ryozo Himino, said last Thursday that the Central Bank Continue increasing interest rates If the “economy and prices move in line with the bank’s forecasts.”

The Central Bank of Japan had increased interest rates by 25 basic points to 0.5% at its January meetingtaking them to their highest level since 2008.

He Australian dollar He challenged the broader weakness in Asian currencies, appreciating 1.51% to 0.6117 against Greenback.

“We are still wrapped with uncertainty, but what we know is that, when Trump says he will do something, we should take him to his word. And I think that’s why the markets are reacting as they are this morning,” Ray Attrill, boss of global currencies in the National Bank of Australia.

Talking to CNBC “Street Sigs Asia“On Monday, Attill pointed out that” we are going to see that the Chinese currency moves, “which in turn would imply” the disadvantage of material for many of the em (of the emerging market). “

“(Growth) degradations have not yet arrived, but believe me, they come, and that will be the enemy of this type of pro -cyclical coins of professional growth,” he added.