Investors scaled back bearish bets on most Asian currencies after U.S. President Donald Trump's inaugural policies suggested he would negotiate rather than immediately impose hefty tariffs on trading partners,

Osamu Inoue, president of Sumitomo Electric, which makes parts for Volkswagen, Toyota and Stellantis, among others, said Trump’s threatened 25 per cent tariffs on Mexican goods would do more harm to US suppliers, which account for almost a third of car parts investment in Mexico.

Donald Trump has announced that his administration will impose a 25% tariff on goods imported from Canada and Mexico beginning February 1. The president, who was sworn in on Monday in Washington, also stated his intention to implement a 20% tariff on goods from all other countries.