Mexico Moves to Increase Tariffs on Asian Imports to Protect Domestic Industries 
RBA Holds Rates but Warns of Rising Inflation Pressures 
Wall Street Futures Slip as Oracle Earnings Miss Reignites AI Spending Concerns 
Global Markets Steady as Yen Holds Firm After Japan Earthquake Amid Central Bank Focus 
Australia’s Business Conditions Ease in November as Capacity Constraints Persist 
China Warns of Rising Global Risks as Tariff Pressures Intensify in 2025 
Gold Prices Dip as Markets Absorb Dovish Fed Outlook; Silver Eases After Record High 
Wall Street Futures Steady as Markets Await Fed Decision; Nvidia Gains on China Chip Sales Approval 
Asian Markets Slip as Investors Brace for Fed Rate Cut and Global Policy Decisions 
Gold Prices Hold Firm as Markets Await Fed Rate Cut; Silver Surges to Record High 
Global Forex Markets Brace for Fed Decision as Yen Extends Weakness 
U.S.-Indonesia Trade Deal Faces Uncertainty as Jakarta Reconsiders Key Commitments 
Oil Prices Edge Higher as U.S. Seizes Sanctioned Venezuelan Tanker 
Asian Currencies Hold Steady as Traders Await Fed Decision; Aussie Dollar Edges Higher 
ADB Approves $400 Million Loan to Boost Ease of Doing Business in the Philippines 
Australian Dollar Rises as RBA Holds Rates and Signals Persistent Inflation Risks 
Asian Stocks Slip as Oracle Earnings Miss Sparks AI Profitability Concerns 
The U.S. dollar rebounded in volatile Asian trading on Tuesday after President Donald Trump suggested potential tariffs on Canada and Mexico, though specifics were scarce. Trump hinted at a 25% tariff announcement on February 1, surprising markets that had anticipated a more measured approach.
Trade-exposed currencies reacted sharply, with the Canadian dollar and Mexican peso falling. The dollar rose 1.2% to 1.4475 against the Canadian dollar and gained 1.3% on the peso. The dollar index climbed 0.6% to 108.65 after a 1.2% drop on Monday, its steepest daily decline since late 2023.
The euro slipped to $1.0364 from an earlier high of $1.0434, as the European Union, with its substantial trade surplus with the U.S., is seen as a potential target for tariffs. The dollar also rebounded 0.3% against the Japanese yen to 156.06, recovering from a five-week low of 154.90. The yen had strengthened last week on expectations of a Bank of Japan rate hike this Friday.
Market strategists were caught off guard by Trump’s aggressive tariff proposal. "A 25% tariff as a starting point is unexpected," said Shoki Omori, chief global desk strategist at Mizuho Securities. "Markets had anticipated an incremental approach, possibly beginning with China."
The dollar also gained 0.3% on the Chinese yuan to 7.2847. Trump has previously threatened China with tariffs as high as 60%, heightening concerns over trade tensions.
Currency markets are now closely monitoring developments, especially ahead of the Bank of Japan’s policy meeting and potential updates on U.S. trade policy.
