**Asian Currencies Face Weekly Losses Amid U.S. Tariff Announcements**

Forex traders are navigating a challenging landscape on Friday as Asian currencies exhibit uncertainty, tracking toward weekly losses amid escalating trade tensions following President Donald Trump’s recent tariff announcements.

**Market Overview**

The US Dollar Index, a barometer for the dollar’s strength against major currencies, climbed 0.3% during the Asian trading session, indicating a modest extension of gains. US Dollar Index Futures showed an uptick of 0.2%, reflecting ongoing bullish sentiment for the greenback.

**Tariff Impacts on Currency Markets**

President Trump’s announcement of a 35% tariff on Canadian imports, effective August 1, has sent ripples through the forex markets. This move adds to an already tumultuous trading environment, as tariffs of 25% on goods from South Korea and Japan were previously declared, alongside a staggering 50% tariff on copper imports.

Trump’s rhetoric continues to create unease, as he has also threatened a 10% tariff on countries aligning with the BRICS nations. While these tariff measures have not yet profoundly impacted broader market movements, apprehension remains high among traders about potential escalations.

As noted by ING analysts, “The letters may have bought time, but they’ve also reignited uncertainty. For global markets and policymakers alike, the tariff saga is far from over.”

**Currency Performance**

In the forex market, the Japanese yen has been one of the hardest hit, with the USD/JPY pair rising 0.5% on Friday and marking a substantial weekly decline of 1.7%. The South Korean won’s performance reflects a similar struggle, with the USD/KRW pair gaining 0.3% but facing a projected weekly loss of over 1%.

In China, both the onshore USD/CNY and offshore USD/CNH currency pairs experienced a minor decline of 0.1%. The Singapore dollar remained stable against the greenback but is expected to conclude the week down by about 0.5%. The Indian rupee saw a slight increase of 0.1% against the dollar, yet is on track for weekly losses as well.

Conversely, the Australian dollar is bucking the regional trend, with the AUD/USD pair gaining 0.1%. The currency has positioned itself for a weekly gain, bolstered by the Reserve Bank of Australia’s unexpected decision to maintain interest rates this week.

**Conclusion**

As forex traders assess the implications of ongoing tariff disputes, vigilance is warranted. Currency fluctuations influenced by geopolitical developments, such as tariffs, can provide volatile trading opportunities, but they also require careful risk management. Traders should stay informed and closely monitor the evolving dynamics of international trade, as these factors will undoubtedly influence currency movements in the coming days.