Investing.com-- Most Asian currencies ticked lower on Friday, set for weekly declines, as the U.S. dollar firmed amid more tariff threats from U.S. President Donald Trump, while the Chinese yuan edged up after the central bank pledged fresh stimulus measures to boost economic growth.

The US Dollar Index rose 0.1% in Asian trading, drifting further away from a four-month low it reached last week. 

Chinese yuan ticks up on PBoC stimulus pledge

The Chinese yuan’s offshore USD/CNH and onshore USD/CNY pairs edged 0.1% lower, each.

China’s central bank, the People’s Bank of China (PBoC), announced plans on Thursday to implement additional monetary tools aimed at stimulating growth. 

These measures include potential interest rate cuts and maintaining the stability of the yuan amid a challenging global economic environment. 

Asian currencies set for weekly losses amid escalating trade tensions

Trump escalated trade tensions on Thursday, threatening a 200% tariff on European alcoholic beverages, such as wines and champagnes, if the EU moves forward with its planned 50% tariff on American whiskey.

The EU’s decision, set to take effect on April 1, comes in retaliation to the U.S.’s newly implemented 25% tariffs on imported steel and aluminum.

Moreover, Trump is set to impose reciprocal tariffs all over the globe on April 2, which could further sour investor mood.

The Japanese yen’s USD/JPY pair rose 0.4%, and was set to inch up 0.2% this week.

The Malaysian ringgit’s USD/MYR pair gained 0.2%, on track for a 0.7% weekly rise. The Indian rupee’s USD/INR pair edged up 0.1%.