White House reduces April 2 tariff plans

The Asian forex market saw significant changes on Monday, March 24, 2025. The White House announced it is scaling back its tariff plans set for April 2. The focus will shift to targeted reciprocal tariffs instead. Sector-specific tariffs on cars, chips, and pharmaceuticals are unlikely to be announced. However, broader tariffs will still affect major trading partners, including countries labeled the “Dirty 15,” such as China, the EU, and Mexico. Following this news, the U.S. dollar began to weaken. The markets opened higher with U.S. equity index futures, which further boosted foreign exchange activity. The Australian dollar appreciated notably, while the euro, British pound, New Zealand dollar, and Canadian dollar also gained ground. However, some of these gains reversed later. In trading pairs, USD/JPY increased but did not reach 150. The Japanese yen lost value despite comments from finance officials meant to stabilize it. Preliminary Purchasing Managers' Index (PMI) figures for March showed a decline for both Australia and Japan compared to February. Additionally, the People’s Bank of China set the USD/CNY reference rate at its lowest for the yuan since January 20. In political news, South Korea's Constitutional Court overturned Prime Minister Han Duck-soo's impeachment from last year. The decision came after a 7-1 vote by the court.