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Asian currencies suddenly weakened on Monday while US dollar gathered after US President Donald Trump dazed tariffs in several countries over the weekend.
AND dollar index – which measures the value of the GreenBack -Au ratio of several major global currencies – increased by 1.11% to 109.58.
Chinese offshore yuan It dropped 0.36% to 7.347 against Greenback, after Trump’s 10% duties on Chinese exports to US large investment banks forecast Yuan to weaken on average 7.51 per dollar By the end of this year because of Trump’s tariffs.
Trump also imposed 25% of Tariff Canada and Mexico, two of the best trade partners. Canada and Mexico Immediately vowed to retaliatewhile China wants to challenge duties at the World Trade Organization.
Chinese markets are on a seven -day break until Tuesday for New Year’s Day.
India, which on Saturday announced its goal to reduce its fiscal deficit to 4.4% of GDP to its budget, she saw Rupees fall to a record low of 87,101 compared to the dollar, weakening 0.66%. Calls to reduce the rate increases as the growth of the Earth slows down. Lower rates have a tendency to weaken currencies.
AND South Korean won amortized 0.83% to 1,467.65.
AND Japanese yen weakened 0.19% to 155.47 compared to the dollar. The fall limited the attitude of the interest rate of the Japan bank. Deputy Governor Boj -a Ryozo Himino reportedly said last Thursday that the central bank will Continue to increase interest rates If “economics and prices move in accordance with the forecasts of the bank.”
Japanese central bank has increased interest rates up to 25 base points at 0.5% on its Januarybringing them to the highest level since 2008.
AND Australian dollar They defied wider weakness in Asian currency, respecting 1.51% to 0.6117 compared to greenery.
“We are still wrapped in uncertainty, but what we know is that when Trump says he will do something, we should take him into his word. And I think that is why markets react the way they are this morning,” Ray Attrill, a global foreign exchange head at the National Australian Bank.
In an interview with CNBC “Street signs of Asia“On Monday, Attrill noted that” we will see the Chinese currency moving upwards, “which in turn would mean” the material of the manne for many waves EM (emerging). “
“[Growth] Downgrade have not yet passed, but believe me, they come, and that will be the enemy for such a pro cyclic currency for growth, “he added.
