By Asian currencies suffered their worst collective decline since the 2020 pandemic Thursday, with China’s yuan leading losses as Trump’s tariff proposals sparked a region-wide flight to safety.
Currency Moves:
- Chinese Yuan: USD/CNY +1.8% to 7.28 – weakest since November 2023
- Japanese Yen: USD/JPY +1.2% to 152.45 – 34-year dollar high
- Australian Dollar: -2.1% to $0.6410 – 9-month low
- Korean Won: -1.9% – biggest drop since September 2024
Central Bank Responses:
- PBOC suspected of $20B intervention
- Bank of Japan emergency meeting called
- RBA considering rate hike pause
“The currency market is signaling that these tariffs would be catastrophic for Asian exporters,” said Standard Chartered FX strategist Eddie Cheung. “We’re seeing capitulation across EM currencies.”
Projected Impacts:
- 5-7% earnings cuts for export-heavy firms
- $150B potential capital outflow from Asia
- Inflationary pressures across region