Trump’s Tariff Bombshell: Asian Currencies Brace for Impact as Markets Tumble

Another day, another trade war—Asian currencies are taking the hit as Trump's latest tariffs send shockwaves through forex markets.

Here's the fallout:

• Yuan, won, yen all flashing red as protectionism goes viral

• Export-heavy economies scrambling to contain the bleeding

• Bitcoin quietly mooning in the corner (because of course it is)

Market veterans sigh as the 'America First' playbook gets another rerun—because nothing says 'strong economy' like strangling global trade. Meanwhile, crypto traders are stacking sats while traditional finance plays musical chairs with tariffs.

Now that TRUMP announced a new set of tariffs, which are 25% on Japan and South Korea, the DXY index quickly rebounded in value. It touched 97.57 and remains on the greener side of the spectrum since Monday’s trading session. The development indicates that Asian currencies will remain under pressure as they will have to deal with the price hikes.

US Dollar To Rebound in Value, Pressure Now on Asian Currencies

The glorious run of Asian currencies in the forex market is being challenged by Trump’s recent tariffs. Apart from dealing with the tariffs, Asian leaders have to appear strong and not look like they’re bowing down to the US. The repercussions of looking weak make their prospects as leaders dip in the domestic matters.

Phillip Wool, the Head of Portfolio Management at Rayliant Global Advisors predicted that Asian currencies could begin to weaken hereon.He added that Japanese stocks could also decline as automakers will find it expensive to sell cars in the US.he said.

He also stressed that the market is surprised as to why Japan and South Korea did not negotiate a deal with the US sooner.he summed it up.