Investing.com– Most Asian currencies moved in a tight range on Tuesday as traders weighed the potential for less stringent trade tariffs under incoming US President Donald Trump. , while the dollar continued to recover from some overnight losses.

The Chinese yuan continued to lag behind its peers after its onshore pair hit its weakest level in 17 years on Monday. While the currency has recovered some ground, it remains weak, with new US sanctions against Chinese companies adding further pressure on the currency.

The dollar also held steady after recovering most of its losses overnight, as a recent report fueled more speculation about what Trump’s tariff plans would include.

The Japanese yen pair rose 0.4% and hit its highest level in nearly six months, while the Australian dollar rose 0.2%. Australia’s data for November is due on Wednesday.

South Korea’s won pair fell slightly, while the Indian rupee pair eased after recovering well from a record high of more than 86 rupees.

The dollar remains at a more than 1-week low amid tariff speculation

The and rose slightly in Asian trade, recovering from a week low hit on Monday.

The greenback recovered most of Monday’s losses after Trump denied a Washington Post report that his administration would impose less stringent trade tariffs than initially promised.

Trump—who is set to take office in less than two weeks—has vowed to impose steep import tariffs against China and other major economies, raising concerns of a new world trade war.

The prospect of more tariffs has been a key driver of the dollar’s recent rally, as has growing confidence that the Federal Reserve will cut interest rates at a slower pace in 2025. Hawkish comments from Fed officials continued this idea over the weekend.

This week’s focus is now on key data for December, due on Friday, for further signs of the US economy and labor market.

China’s yuan is weak amid US trade concerns

The Chinese yuan was the worst performing Asian currency this week, touching its weakest level in 17 years on Monday.

The onshore pair of the yuan rose 0.3% on Tuesday, with the Chinese currency remaining weak on hopes of further US trade headwinds.

The US on Tuesday added technology giants Tencent Holdings Ltd (HK: ) and Contemporary Amperex Technology (SZ: ) to a blacklist of companies with ties to China’s military, threatening to further deepen ties between the largest economy in the world.

Beijing is expected to offer more stimulus measures in the face of a new trade war with the US

This week’s focus is on , scheduled for Thursday, for further signs of Asia’s largest economy, as it struggles to strengthen growth.