The U.S. dollar opened Thursday’s Asian session under pressure, as stronger-than-expected earnings from NVIDIA lifted investor sentiment while markets waited for clarity on the latest U.S. tariff measures on foreign imports.
The U.S. Dollar Index, which tracks the greenback against a basket of six major currencies, extended Wednesday’s losses and slipped to 97.592. Traders remain cautious as uncertainty lingers over how President Donald Trump will respond to the Supreme Court’s February 20 decision that struck down his emergency tariff measures.
On Wednesday, U.S. Trade Representative Jamieson Greer stated that tariff rates for certain countries could increase from the newly introduced 10% level to 15% or higher. However, no specific countries were named, and further details were not provided. Analysts at Westpac noted that President Trump’s 2026 State of the Union address focused heavily on economic themes but offered limited clarity on new trade policy initiatives. They also pointed out the lack of explanation on how higher tariffs would apply in cases where they conflict with existing U.S. trade agreements.
Investor confidence improved after NVIDIA projected first-quarter revenue above market expectations, fueling a technology-led rally on Wall Street and pushing major indexes to two-week highs. Still, NVIDIA shares trimmed gains in after-hours trading, and U.S. equity futures edged lower.
In currency markets, the Japanese yen strengthened 0.2% to 156.045 per dollar, recovering from two-week lows reached a day earlier. Bank of Japan Governor Kazuo Ueda said policymakers will closely review economic data at their March and April meetings when considering potential interest rate increases, according to the Yomiuri newspaper. His comments kept the possibility of a near-term rate hike on the table.
The yen had previously weakened after the Japanese government appointed two academics, viewed as supportive of stimulus policies, to the Bank of Japan’s board. Analysts at Capital Economics warned that further government efforts to influence the central bank could trigger renewed volatility in Japan’s bond and currency markets. However, they added that underlying fundamentals suggest stabilization in the Japanese government bond market and a potential rebound in the yen.
Meanwhile, the yield on the U.S. 10-year Treasury note rose slightly to 4.048%. Market expectations remain firmly anchored toward no change in interest rates at the Federal Reserve’s upcoming meeting. According to the CME Group FedWatch tool, futures markets are pricing in a 98% probability that the Fed will keep rates unchanged at its two-day meeting on March 18.
Against the Chinese yuan in offshore trading, the U.S. dollar was steady at 6.854, near the strongest levels for the yuan in three years. The euro traded flat at $1.1815, while the British pound held steady at $1.3555.
The Australian dollar remained stable at $0.7127. The New Zealand dollar briefly fell below the $0.60 level before recovering to trade flat at $0.6001.
In cryptocurrency markets, Bitcoin extended its decline, falling 1.0% to $68,218.64, while Ethereum dropped 1.9% to $2,060.31.
