The dollar dropped, extending recent losses, on concern over the impact of higher tariffs on the US economy and the risk of a widening fiscal deficit.
Bloomberg’s gauge of the greenback slipped for a third day, heading for its lowest close since July 2023, on weak demand for US assets.
An index of Asian currencies climbed toward the highest level since October, with the Taiwan dollar advancing for a sixth day.
Equity-index futures for the S&P 500 and Nasdaq 100 jumped 0.9%, holding their gains from a Monday holiday, as President Donald Trump extended a deadline on aggressive Euro area tariffs.
The yen rose as much as 0.5% after Bank of Japan Governor Kazuo Ueda indicated his intention to keep raising interest rates if the economy improves.
Treasuries edged higher with the 10-year yield falling three basis points. Japan’s 40-year bonds rose ahead of a bond auction Wednesday.
Asian shares swung between gains and losses. Trump’s tariff threats and the risk of a widening US fiscal deficit are showing up most clearly in the dollar, diminishing the appeal of the currency.
