BENGALURU: Thailand’s baht slipped the most among weaker Asian currencies on Monday as the dollar firmed on renewed concerns about US President Donald Trump’s tariff plans, while investors awaited the Federal Reserve’s policy decision.

The baht fell 0.6% and the Indian rupee inched 0.3% lower.

The MSCI gauge of emerging market currencies was last down 0.3%, set for its weakest trading session in more than five weeks.

The dollar strengthened after Trump threatened Colombia with retaliatory levies and sanctions as part of his immigration crackdown.

However, later on Sunday, after the South American nation agreed to accept military aircraft carrying deported migrants, the White House said it would not carry out the threat.

While fears of tariffs, especially on Chinese goods, eased slightly last week boosting most Asian currencies, DBS analysts warned that a week without tariffs being imposed should not be seen as “a welcome marker” for what might lie ahead.

“Given that Trump has talked about his belief in the potency of tariffs, actual and threatened, for four decades, we are sceptical that this four-year term would somehow begin and end with minimal application of his favourite tool,” they said in a note.

The Chinese yuan fell 0.4%. An official factory survey showed that China’s manufacturing activity unexpectedly contracted in January to its weakest since August.

Regional stock markets were also weaker, with Kuala Lumpur slipping around 0.6%.