| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 01:30 | Australia | National Australia Bank's Business Confidence | June | 2 | -5 | 5 |
| 04:30 | Australia | Announcement of the RBA decision on the discount rate | | 3.85% | 3.60% | 3.85% |
| 05:30 | Australia | RBA Press Conference | | | | |
| 06:00 | Germany | Trade Balance (s.a.), bln | May | 15.7 | 15.5 | 18.4 |
| 06:45 | France | Trade Balance, bln | May | -7.7 | -7.7 | -7.8 |
During today's Asian trading, the yen fell sharply after U.S. President Donald Trump confirmed plans to impose 25% tariffs on imports from Japan and South Korea starting August 1, escalating trade tensions that unsettled Asian markets. Although Trump indicated he might grant extensions if countries presented proposals, the announcement rattled investors. The Japanese yen dropped to a two-week low against the dollar and hit its weakest levels in months versus the euro and pound. Prime Minister Shigeru Ishiba called the tariffs “deeply regrettable” and pledged to keep negotiating, though analysts noted that an agreement before Japan’s July 20 Upper House election was unlikely.
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 0.23% to 97.34.
The South Korean won recovered after Monday’s losses, while other Asian currencies, including China’s yuan, initially weakened but later regained ground as state banks intervened. Meanwhile, the Australian dollar surged by 0.6% after the Reserve Bank of Australia surprised markets by leaving rates unchanged at 3.85%, citing the need for more data to confirm slowing inflation.
Markets were cautious amid uncertainty about where tariff rates would ultimately settle and which countries might secure exemptions. Memories of Trump’s earlier tariff reversals kept reactions measured. In April, he capped tariffs at 10% to allow for negotiations, but only Britain and Vietnam have since reached deals. The European Union, which is not facing new tariff letters, still hopes to finalize an agreement soon after what officials described as constructive talks with Washington. Currency strategists warned that further volatility is likely as negotiations intensify in the run-up to the August deadline.