Investing.com– Most Asian currencies moved in a tight range on Tuesday as traders gauged the potential for less strict trade tariffs under incoming U.S. President Donald Trump, while the dollar steadied from some overnight losses.
The Chinese yuan continued to severely lag its peers after its onshore pair hit its weakest level in 17 years on Monday. While the currency did recover some ground, it remained fragile, with new U.S. restrictions against Chinese companies adding more pressure on the currency.
The dollar also steadied after recouping a bulk of its overnight losses, as a recent report sparked increased speculation over just what Trump’s tariff plans will entail.
The Japanese yen’s USD/JPY pair rose 0.4% and hit its highest level in nearly six months, while the Australian dollar’s AUD/USD rose 0.2%. Australian consumer inflation data for November is due on Wednesday.
The South Korean won’s USD/KRW pair fell slightly, while the Indian rupee’s USD/INR pair steadied after recovering sharply from record highs above 86 rupees.
Dollar steadies above 1-week low amid tariff speculation
The dollar index and dollar index futures rose slightly in Asian trade, recovering from a one-week low hit on Monday.
The greenback recouped a bulk of its Monday losses after Trump denied a Washington Post report that his administration will impose less strict trade tariffs than initially promised.
Trump- who is set to take office in less than two weeks- has vowed to impose steep import tariffs against China and other major economies, raising concerns over a renewed global trade war.
