Asia FX rangebound as markets navigate tariffs; Singapore GDP beats

Investing.com-- Asian currencies were largely flat on Monday after weekly losses, as investors remained sidelined amid a flurry of U.S. trade tariff announcements, while they assessed Singapore’s strong GDP data and positive trade figures from China.

The US Dollar Index, which measures the greenback against a basket of major currencies, edged 0.1% higher in Asia hours. Dollar Index Futures also gained 0.1%.

Trump escalates tariff action with moves on EU, Mexico

U.S. President Donald Trump said on Saturday he would impose a 30% tariff on most imports from the European Union and Mexico from August 1.

The EU said it will extend its pause on retaliatory tariffs against the U.S. until early August, while pushing for a negotiated resolution.

Last week, Trump announced new tariffs on a number of countries, including Japan, South Korea, Canada, and Brazil, along with a 50% tariff on copper, all effective August 1.

Trump’s latest threats also feature a 10% tariff threat targeting countries that align themselves with the BRICS bloc.

Even though recent tariff threats have not had a large impact on broader market moves, traders refrained from placing large bets amid uncertainty.

The Japanese yen’s USD/JPY pair and the South Korean won’s USD/KRW were both muted.

The Australian dollar’s AUD/USD ticked 0.2% lower.

Indian rupee’s USD/INR pair rose 0.2%, while Indonesian rupiah’s USD/IDR gained 0.3%.

Singapore Q2 GDP beats forecast; China trade balance grows

Data on Monday showed that Singapore’s economy grew more than expected in the second quarter of 2025 amid resilient manufacturing and electronics exports despite tariff-related uncertainty.

Still, the government flagged significant uncertainty and downside risks for the global economy in the second half of 2025 due to unclear U.S. tariff policy.

The Singapore dollar’s USD/SGD pair traded flat.

In China, data showed that the country’s trade balance rose above expectations in June, boosted by stronger-than-forecast exports amid mutual tariff cuts with the U.S.

Both the onshore USD/CNY and offshore USD/CNH Chinese yuan pairs also remained unchanged, in line with the broader trend.