Dollar Near Two-Week High as Stock Rout, AI Concerns and Global Events Drive Market Volatility 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
India–U.S. Interim Trade Pact Cuts Auto Tariffs but Leaves Tesla Out 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Trump’s Inflation Claims Clash With Voters’ Cost-of-Living Reality 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
The U.S. dollar soared to a three-week high after President Donald Trump imposed new trade tariffs, fueling demand for the greenback as a safe-haven asset. At 04:30 ET (09:30 GMT), the Dollar Index rose 1% to 109.305, following Trump’s 25% tariffs on Canada and Mexico and a 10% duty on China, citing concerns over illegal immigration and drug trafficking.
China, Canada, and Mexico vowed retaliation, raising fears of a renewed global trade war. The offshore yuan hit a record low, the Mexican peso plunged to its weakest in nearly three years, and the Canadian dollar slumped to its lowest level since 2003. Investors anticipate further volatility as trade tensions escalate.
The euro weakened as EUR/USD dropped 1.1% to 1.0248, its lowest since November 2022. Trump hinted at imposing similar tariffs on the European Union, exacerbating concerns over trade imbalances. The U.S. ran a $200 billion trade deficit with the EU last year. Meanwhile, the ECB recently cut interest rates, aiming to boost economic growth amid easing inflation.
Sterling remained relatively stable, with GBP/USD slipping 0.1% to 1.2313. Trump suggested that U.K. tariffs were a possibility but indicated a resolution could be reached. The Bank of England’s upcoming policy meeting may result in interest rate cuts to support the sluggish economy.
In Asia, the offshore yuan (USD/CNH) edged 0.3% higher to 7.3400 after Trump’s tariffs dampened China’s export prospects. Beijing condemned the move and hinted at strong stimulus measures. The Japanese yen saw limited weakness, with USD/JPY trading at 155.22, benefiting from its safe-haven status.
Market uncertainty remains high, with investors closely watching inflation data and central bank decisions as global trade tensions escalate.
