Uncertainty Looms as Trump Tariff Announcement Shakes Global Markets

The yen faced a widespread decline on Tuesday following President Donald Trump's announcement of impending 25% tariffs on goods from Japan and South Korea. The move intensified the ongoing trade tension, leaving markets jittery amid fears of further economic disruption.

While the yen managed to recover some losses against the dollar, it remained weak against several other currencies. In contrast, the Australian dollar saw an uptick, boosted by the Reserve Bank of Australia's unexpected decision to maintain its current cash rate.

Amidst the currency fluctuations, South Korea has expressed intentions to amplify trade discussions with the U.S. as global markets brace for potential volatility. As negotiations with various nations unfold, the global economic outlook remains uncertain.

(With inputs from agencies.)