Investing.com – Most Asian currencies fell on Thursday, extending their underperformance amid concerns over new US tariffs under the administration of Donald Trump, as attention shifted to the meeting of Bank of Japan policy set to begin later in the day.

The BoJ is widely expected to hike at the end of its two-day meeting on Friday.

Analysts believe that recent inflation and wage data have encouraged and supported the central bank’s decision to raise interest rates.

Media reports indicate that the BoJ is likely to signal further interest rate hikes at its meeting if the economy continues its recovery.

The Japanese yen was largely muted ahead of the rate decision.

Asia FX overcome by US tariff concerns

Other regional currencies are under pressure in anticipation of further US tariffs.

After his inauguration on Monday, Trump signaled plans to impose a 10% tariff on Chinese imports starting February 1, and warned of potential European Union tariffs.

Regional currencies face downward pressure. If implemented on their full scale, these tariffs could have a significant impact on most Asian currencies, given the region’s heavy trade dependence on China.

The onshore pair of the Chinese yuan edged 0.1% higher, while the offshore pair was largely unchanged.

The Malaysian ringgit pair rose 0.2%, a day after Bank Negara Malaysia went on hold for the 10th consecutive meeting.

The Australian dollar pair and the Singapore dollar pair were both muted.

The pair of the Indonesian rupiah and the pair of the Indian rupee, decreased by 0.1%, respectively.

The South Korean won pair is slightly higher amid the country’s ongoing political crisis.

The US dollar faces difficulties from the gradual imposition of tariffs

The dollar faces pressure as investors assess the economic consequences of Trump’s gradual implementation of tariffs.

The greenback fell more than 1% at the start of the week after Trump avoided details on the tariffs, hinting they may come at a slower pace.

Most were muted during Asian trading, after rising a day earlier. inches 0.1% higher.

“Markets continue to unwind the USD long as US Treasuries have another strong session, and the delay in tariff announcements underpins some tentative optimism,” ING analysts said in a recent note.