The U.S. dollar weakened during Thursday’s Asian trading session as investors responded positively to stronger-than-anticipated earnings from tech giant Nvidia while awaiting clarity on upcoming American trade tariffs.
The dollar index, which tracks the currency’s performance against six major international currencies, continued its decline from Wednesday’s session, dropping to 97.592. This weakness comes as markets remain uncertain about President Donald Trump’s next moves following the Supreme Court’s February 20 decision that overturned his emergency tariff measures.
U.S. Trade Representative Jamieson Greer announced Wednesday that tariff rates for certain nations will increase from the current 10% to 15% or higher, though he did not specify which trading partners would be affected or provide additional implementation details.
Westpac analysts noted that “President Trump’s 2026 State of the Union address focused on the economy but provided little-to-no information on new policy initiatives.” They also pointed out that the U.S. Trade Representative “offered no details regarding how the higher tariff will be applied in situations where it breaches U.S. trade deals.”
Market sentiment received a significant lift after artificial intelligence leader Nvidia projected first-quarter revenue figures that exceeded analyst expectations on Wednesday. This positive news energized Wall Street stocks, pushing the technology-driven rally to two-week peaks. However, Nvidia shares retreated during after-hours trading, causing U.S. stock futures to decline slightly.
The Japanese yen gained 0.2% against the dollar, reaching 156.045 as it recovered from hitting two-week lows on Wednesday. Bank of Japan Governor Kazuo Ueda indicated that the central bank would examine economic data during its March and April meetings before determining whether to increase interest rates, according to Thursday’s Yomiuri newspaper report.
The yen’s recovery followed Wednesday’s weakness after Japan’s government named two academic economists known for supporting economic stimulus measures to the central bank’s governing board.
Capital Economics analysts warned that “Further efforts from the Takaichi government to influence the BOJ threatens another round of turmoil in Japan’s bond and currency markets.” However, they believe “the underlying fundamentals point towards continued stabilisation in the JGB market and a rebound in the yen.”
The 10-year U.S. Treasury bond yield increased by 0.2 basis points to 4.048%.
Financial markets overwhelmingly expect the Federal Reserve to maintain current interest rates at its upcoming meeting. Fed funds futures indicate a 98% probability that the central bank will leave rates unchanged during its March 18 two-day session, according to CME Group’s FedWatch tool.
In offshore trading, the dollar remained steady against the Chinese yuan at 6.854, representing the strongest position for China’s currency in three years.
The euro held flat at $1.1815, while the British pound showed little movement at $1.3555.
The Australian dollar maintained its position at $0.7127, and the New Zealand dollar briefly dipped below $0.60 against the U.S. currency before recovering to trade flat at $0.6001.
Cryptocurrency markets saw continued declines, with Bitcoin falling 1.0% to $68,218.64 and Ethereum dropping 1.9% to $2,060.31.
