Japanese Yen Rebounds as Trump Flags Currency Weakness 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
China Consumer Stocks Near Decade Lows as AI Shares Surge 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Dollar Holds Near Two-Month High as Yen Approaches 160 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Trump, Xi Focus on Trade and AI at White House Summit 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
Add as a preferred source on Google
The U.S. dollar rebounded in volatile Asian trading on Tuesday after President Donald Trump suggested potential tariffs on Canada and Mexico, though specifics were scarce. Trump hinted at a 25% tariff announcement on February 1, surprising markets that had anticipated a more measured approach.
Trade-exposed currencies reacted sharply, with the Canadian dollar and Mexican peso falling. The dollar rose 1.2% to 1.4475 against the Canadian dollar and gained 1.3% on the peso. The dollar index climbed 0.6% to 108.65 after a 1.2% drop on Monday, its steepest daily decline since late 2023.
The euro slipped to $1.0364 from an earlier high of $1.0434, as the European Union, with its substantial trade surplus with the U.S., is seen as a potential target for tariffs. The dollar also rebounded 0.3% against the Japanese yen to 156.06, recovering from a five-week low of 154.90. The yen had strengthened last week on expectations of a Bank of Japan rate hike this Friday.
Market strategists were caught off guard by Trump’s aggressive tariff proposal. "A 25% tariff as a starting point is unexpected," said Shoki Omori, chief global desk strategist at Mizuho Securities. "Markets had anticipated an incremental approach, possibly beginning with China."
The dollar also gained 0.3% on the Chinese yuan to 7.2847. Trump has previously threatened China with tariffs as high as 60%, heightening concerns over trade tensions.
Currency markets are now closely monitoring developments, especially ahead of the Bank of Japan’s policy meeting and potential updates on U.S. trade policy.
