Asian currencies weaken as U.S. dollar strengthens after Trump levies tariffs [Video]

Asian currencies weakened sharply Monday as the U.S. Dollar rallied after U.S. President Donald Trump slapped tariffs on several countries over the weekend.

The dollar index — which measures the value of the greenback against several major global currencies — spiked 1.11% to 109.58.

The Chinese offshore yuan dropped 0.36% to 7.347 against the greenback, following Trump’s imposition of a 10% duty on Chinese exports to the U.S. Major investment banks have forecast the yuan to weaken to an average 7.51 per dollar by the end of this year due to Trump tariffs.

Trump also imposed 25% tariffs on Canada and Mexico, two of the its top trading partners. Canada and Mexico immediately vowed retaliatory measures, while China is looking to challenge the duties at the World Trade Organization.

Chinese markets are on a eight-day break until Tuesday for the Lunar New Year holiday.

India, which on Saturday announced to cut its fiscal deficit to 4.4% of the …