BENGALURU: The pressure on Asian currencies eased slightly on Wednesday after they slid in the previous session after US President-elect Donald Trump’s pledge for higher tariffs, although lower oil prices weighed on some regional stock markets.

Asian currencies and stocks tumbled in the previous session as the dollar rallied on Trump’s pledge to raise taxes on imports from China, Mexico and Canada. However, the dollar index eased 0.07% at 106.83 on the day.

The greenback could be weighed by the strength in the Japanese yen, which has appreciated recently as geopolitical uncertainty sparks a rush into the safe haven currency, said Poon Panichpibool, a markets strategist at Krung Thai Bank.

The yen had added around 0.7% to hit a near three-week high. Among other currencies, the Malaysian ringgit advanced 0.3% and the Thai baht added 0.2%.

However, China’s yuan eased to a near four-month-low due to declining industrial profits and the potential impact of tariffs. The Mexican peso hovered near its lowest level since July 2022 after plummeting in the previous session.

Among stocks, Bangkok equities fell as much as 0.9% to their lowest since Sept. 16. Oil and gas explorers PTT Pcl and PTT Exploration and Production were down around 0.8% and 1.2%, respectively.

Panichpibool said some energy-heavy stock markets, including Thailand’s, might be pressured by the drop in oil prices after the Israel and Hezbollah ceasefire deal announcement.

Oil prices dropped on Tuesday and held steady in the Asian trading hours on Wednesday as markets assessed the potential impact of a ceasefire deal between Israel and Hezbollah and ahead of a meeting of the oil-producing group.