| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 03:00 | China | Trade Balance, bln | March | 170.52 | 77 | 102.64 |
| 04:30 | Japan | Industrial Production (MoM) | February | -1.1% | 2.5% | 2.3% |
During today's Asian trading, the US dollar declined significantly against major currencies, returning to a 3-year low amid fading investor confidence in the currency due to Donald Trump's unpredictable tariff policy.
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 0.83% to 99.27. President Trump added to market confusion by announcing plans to reveal new tariffs on imported semiconductors within a week, while hinting at potential flexibility for certain firms. This followed a decision on Friday to temporarily exempt smartphones, computers, and other electronics - mostly from China - from harsh tariffs. However, Trump later suggested the reprieve would be short-lived. Experts said that this has been handled with a heavy hand and poor coordination, creating deep uncertainty.
In addition, markets are reassessing the dollar's long-standing role as the global reserve currency amid a wave of “rapid de-dollarization. This shift has been reinforced by a sharp sell-off in U.S. Treasury bonds, partly due to hedge funds unwinding basis trades. Last week saw the largest rise in borrowing costs in decades, with 10-year yields steady at 4.46% on Monday.
The yen rose 0.8% against the U.S. dollar, while Japanese officials are preparing for upcoming trade negotiations with the U.S., likely to include currency discussions. Some expect Washington to push Tokyo to support the yen. Japanese Economy Minister Ryosei Akazawa confirmed that FX matters would be addressed between Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent.
The yuan declined by 0.35% against the US dollar. New Chinese export data showed a sharp rise in shipments for March, as exporters rushed to beat the implementation of new tariffs—highlighting how global markets remain on edge amid unpredictable policy shifts from Washington. China’s exports jumped 12.4% year-on-year in March, marking the strongest growth in five months. Imports into China fell 4.3% year-on-year, reflecting weak domestic demand and deepening deflationary pressure. Despite efforts to boost the economy post-COVID, confidence remains low, especially amid a lingering property crisis. Trade surplus was $102.64 billion in March, down slightly from $104.8 billion in December, the most recent comparable reading, but roughly in line with the level recorded a year earlier. Economists had expected a decline in trade surplus to $77 billion.