# 'Asian crisis in reverse' as currencies soar on the dollar

> Analysts said U.S. tariffs under President Trump have undermined confidence in the dollar and disrupted the flow of trade dollars into U.S. assets. Asian currencies have rallied sharply against the dollar as a result.

- Date: 2025-05-06 · published 2025-05-06T12:00:00.000Z
- Category: trade · region Asia · magnitude medium
- Page: https://feedsoft.ai/events/9618-asian-crisis-in-reverse-as-currencies-soar-on-the-dollar
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Tariffs reduce Chinese exporters' access to U.S. customers, which weakens their dollar receipts and can cut into demand for U.S. farm goods. A weaker dollar generally supports US commodity export prices.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2025-05-06 | 1 | -0.7% | -3.6 | Tariff-driven loss of confidence in the dollar and a broad Asian FX rally explain the dollar-weakness backdrop behind the yuan's gain. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-01-31 | [Dollar hit by crossfire as Trump talks currency wars](https://feedsoft.ai/events/73222-dollar-hit-by-crossfire-as-trump-talks-currency-wars.md) | -0.6% | -0.6% |
| DXY | 2019-12-16 | [USD/CAD: Trade Deal Weighs On US Dollar - Currency Live](https://feedsoft.ai/events/55809-usd-cad-trade-deal-weighs-on-us-dollar-currency-live.md) | +0.1% | -0.6% |
| DXY | 2025-03-04 | [Dollar Slides as Trade-War Risk Drives Investors to Other Havens](https://feedsoft.ai/events/9709-dollar-slides-as-trade-war-risk-drives-investors-to-other-havens.md) | -1.2% | -0.8% |
| DXY | 2025-02-04 | [US dollar edges lower as China tariffs kick in](https://feedsoft.ai/events/26336-us-dollar-edges-lower-as-china-tariffs-kick-in.md) | -0.4% | -0.9% |
| DXY | 2026-02-23 | [Asia FX gains as tariff concerns hurt dollar; AI-led stocks hit records \| Reuters](https://feedsoft.ai/events/20885-asia-fx-gains-as-tariff-concerns-hurt-dollar-ai-led-stocks-hit-records-reuters.md) | -0.1% | +1.9% |
| USDCNY | 2018-08-01 | [EM ASIA FX-Most Asian currencies tread water as Fed eyed amid trade war fears](https://feedsoft.ai/events/63792-em-asia-fx-most-asian-currencies-tread-water-as-fed-eyed-amid-trade-war-fears.md) | +0.4% | -0.0% |
| USDCNY | 2025-03-03 | [Trump says Japan, China cannot keep reducing value of their currencies \| Reuters](https://feedsoft.ai/events/25820-trump-says-japan-china-cannot-keep-reducing-value-of-their-currencies-reuters.md) | -0.7% | -0.3% |
| USDCNY | 2020-01-21 | [WATCH: Renminbi rises 0.5% against the US dollar, causing optimism amongst global investors](https://feedsoft.ai/events/7878-watch-renminbi-rises-0-5-against-the-us-dollar-causing-optimism-amongst-global.md) | +0.8% | +2.0% |

## Sources

- reuters.com: https://www.reuters.com/world/china/asian-crisis-reverse-currencies-soar-dollar-2025-05-06/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.