Global Currency Markets React to Trump's Tariffs and Economic Uncertainty

The Indonesian rupiah fell to its lowest level since April 2020, dropping 0.7% to 16,559 per dollar on Friday, amid concerns over potential US tariffs. This marks the currency's worst performance among major emerging Asian economies this year, with a nearly 3% decline. President Trump announced additional tariffs on Chinese imports, adding a 10% duty effective March 4. This decision has heightened concerns about escalating trade tensions between the US and China. The dollar gained safe-haven support ahead of the tariffs, but is still headed for a monthly loss. The yen is set to end the month with a gain of more than 3.6%, its best since last July, amid bets on Bank of Japan rate hikes. The Australian dollar sank to its lowest in more than three weeks, while the euro struggled at a two-week low.