Overview

The Reuters article dated 24‑07‑2026 reports that most Asian currencies weakened against the U.S. dollar after President Donald Trump’s new tariff regime took effect, reviving inflation fears and boosting the greenback.

US Tariff Measures

Effective on Friday, the United States replaced the temporary 10 % levies that expired overnight with fresh duties of 10 % and 12.5 % on imports from 60 trading partners. The measures cover nearly all U.S. imports, although oil, gas and certain foodstuffs are exempt.

Treasury Yield Moves

Benchmark Treasury yields rose sharply, with the 10‑year yield climbing above 4.7 % overnight and the 30‑year yield remaining comfortably above 5 %. The higher yields underpinned broad demand for the dollar, pushing the U.S. Dollar Index near a three‑week high.

Oil Price Context

Brent crude held above $100 per barrel after Iran‑backed Houthi attacks on Saudi oil tankers in the Red Sea and renewed U.S. strikes on Iran, heightening concerns of prolonged supply disruptions and reinforcing inflation worries.

Central Bank Outlook

The euro fell after the European Central Bank left interest rates unchanged, maintaining a cautious, meeting‑by‑meeting stance. The Bank of Japan was reported to be considering faster‑than‑expected rate hikes, yet the yen remained near a four‑decade low of about 163.8 per dollar. The U.S. Treasury reiterated concerns over excessive yen volatility and encouraged further policy normalization in Japan.

OCBC Commentary

OCBC noted that foreign‑exchange markets had remained remarkably subdued despite rising geopolitical risks and oil prices, but warned that a sustained oil shock could quickly revive market volatility and support a broader U.S. dollar rally. The bank highlighted that the greenback benefits from the United States’ position as a net energy exporter, while higher oil prices reinforce inflation concerns and keep the Federal Reserve focused on upside price risks. OCBC also stated that intervention alone is unlikely to fundamentally alter the yen’s role as a funding currency and that a more durable recovery would probably require the Bank of Japan to accelerate the pace of rate hikes.

Regional Currency Moves

The Korean won weakened further after touching its highest level in about two‑and‑a‑half months earlier in the week. The Japanese yen hovered near its four‑decade low. The Chinese yuan traded little changed, while the Australian and New Zealand dollars steadied after sharp overnight losses. The Singapore dollar showed modest gains against the dollar.

Outlook and Upcoming Events

Investors are looking ahead to China’s Politburo meeting for additional support measures for employment and household consumption, as well as details on the 15th Five‑Year Plan. China’s July manufacturing PMI and South Korea’s July trade data are also on the radar. The Monetary Authority of Singapore will start a busy week for regional central banks, with Citi maintaining a non‑consensus call for a 50‑basis‑point steepening of the SGD NEER policy band. Attention will then shift to the Federal Reserve and the Bank of Japan later in the week, as market participants assess whether higher energy prices, fresh U.S. tariffs and persistent inflation could further delay the global monetary easing cycle.