Zaman: Policy Uncertainty Will Weigh on USD Confidence

The US Supreme Court invalidated President Trump’s reciprocal tariffs on February 23, 2026, triggering market volatility as he proposed a new 15% global import levy, sparking concerns over economic stability. Asian stocks rose while US futures fell and the dollar weakened amid policy uncertainty, reflecting investor skepticism about the abrupt shift in trade strategy and its potential global economic impact. Mahjabeen Zaman, ANZ’s Head of FX Research, warned that prolonged policy unpredictability could erode confidence in the USD, exacerbating currency market fluctuations and risk-off sentiment. The proposed global tariff, broader than prior measures, risks disrupting supply chains and inflation expectations, further straining US trade relations and undermining dollar demand as a safe-haven asset. Markets reacted immediately to the legal and political shifts, with traders pricing in higher volatility as the administration’s trade policy remains in flux, leaving businesses and investors bracing for further turbulence.