| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 02:00 | New Zealand | RBNZ Interest Rate Decision | | 3.75% | 3.5% | 3.5% |
| 05:00 | Japan | Consumer Confidence | March | 35.0 | 34.7 | 34.1 |
During today's Asian trading, the US dollar declined significantly against major currencies after Trump's new tariffs took effect. China will see net total tariffs of 104% on its exported goods to the US. They comprise a previously imposed 20% duty, a 34% additional tariff and a last-minute 50% increase that Trump signed late Tuesday.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.98% to 101.97. Experts warn that given the extremely volatile situation, it is impossible to reasonably assess the impact of the ongoing trade war between the United States and China on the Chinese economy. Overall, the changing tariff headlines and the specter of a protracted trade war between the world's two largest economies have caused sharp volatility in financial markets. Analysts at JPMorgan believed the rapid escalation with U.S. tariffs on China were disruptive enough to push the global economy into recession. Despite the growing concern and concern expressed by economists and company executives, representatives of the Trump administration stubbornly defend their trade policy. Treasury Secretary Scott Bessent said about 70 countries want to discuss deals with the White House, while trade adviser Peter Navarro said tariffs are non-negotiable.
The yen rose 0.9% against the US dollar amid increased demand for safe haven assets. Meanwhile, Bank of Japan Governor Kazuo Ueda said on Wednesday that the central bank will continue to raise interest rates if the economy continues to recover, but will "without prejudice" carefully study whether its economic forecasts will come true. "The economy and prices are moving roughly in line with our forecasts made in the quarterly report. But we need to pay due attention to the risks, especially the recent increase in uncertainty about the development of each country's trade policy," Ueda said.
The New Zealand dollar rose 0.4% against the US dollar, while investors assessed the results of the Central Bank meeting. The Reserve Bank of New Zealand (RBNZ) has cut its official cash rate (OCR) by 25 basis points to 3.50%, a move that was widely anticipated by economists and market analysts. This marks the central bank’s lowest rate since October 2022. The decision reflects growing concerns over global economic uncertainty, particularly following recent increases in international trade tariffs—most notably those imposed by the United States. These developments have heightened recession risks and weakened the outlook for both global and domestic growth. In its policy statement, the RBNZ noted that the new trade barriers pose downside risks to New Zealand’s economic activity and inflation outlook. While inflation currently sits near the midpoint of the bank’s 1% to 3% target range, the RBNZ indicated that the economy remains fragile. The central bank emphasized that it retains the flexibility to lower rates further if warranted by future developments, particularly if the effects of tariff policies become more pronounced. Financial markets now price in a high probability of another rate cut in May, with expectations that the OCR could fall to around 2.67% by the end of 2025.