The tariff drama episode is heading for a climax at the end of this week with the impact of the latest announcement from President Donald Trump continuing to drive market movements.
The US dollar fell to a 10-year low against the safe-haven currency Swiss franc due to uncertainty over Trump's tariff stance.
The significant decline in the US dollar in New York trading yesterday was also driven by the report of US inflation data published.
The consumer price index (CPI) data for March showed a decrease to 2.4%, from 2.8% the previous month, lower than the forecast of 2.5%.
Although inflation showed a decline towards the central bank's target, the figure reflects a decline in consumer purchasing power.
This situation will also increase concerns about the risk of slow growth in the US economy, which is currently plagued by tariff confusion.
Trump on Wednesday announced that tariffs would be reduced to 10% for most countries and suspended tariffs for a period of 90 days.
However, China was exempted from the postponement and tariffs on the Great Wall nation were increased to 125% effective immediately.
In addition, a 20% tariff specifically on the chemical fentanyl brought China's latest tariff total to 145%.
The action was said to be a lesson to China for showing 'disrespect' to the world market.
Trump's drastic 'u-turn' decision sparked uneasy reactions from various parties and some questioned the action as market manipulation.
However, the latest development was that Trump in a cabinet meeting expressed his desire to end the trade war with China to ease global tensions through constructive negotiations.
