Document Type


Publication Date

Fall 2018


Recently, China has announced plans for reciprocal tariffs on $50 billions of 106 products that imported from the United States as the second response to President Donald Trump’s increasing tariffs on Chinese exports. Only in a few months, the two influential countries have consecutively announced punishment policies on each other’s exports in order to protect their advantages. The economic war between the two most powerful economies have great impact not only on currencies of themselves but also on those of other countries. After each policy was announced, different countries have their currencies fluctuated differently. The change in exchange rate is impacted by a country’s international trading, investment and competitiveness Therefore, the project focuses on the impact of the economic war between the United States and China on the US Dollar, the Chinese Yuan and currencies of some East Asian Countries, which include the Korean Won, the Japanese Yen, the Singapore Dollar, and the Vietnamese Dong. This project will also examine how those East Asian currencies change relatively to the US Dollar and the Chinese Yuan to evaluate their trend, sensitivity and volatility towards punishment policies. The research will also determine the accuracy of predicted factors and whether the United States or China is the aggressor and has more impact on the East Asian currencies