Asian stocks were mixed on Tuesday as the dollar remained soft amid uncertainty over U.S. President Donald Trump's policies and his withdrawal from the Trans-Pacific Partnership trade deal.
Withdrawing from the TPP agreement was a promise Trump made in his presidential campaign, saying it would protect American workers. The 12-nation trade deal was negotiated by former President Barack Obama's administration as a key pillar in his pivot to Asia.
Meanwhile, Trump also told business leaders on Monday thathis administration could cut regulations by 75 percent or "maybe more" although further details were not given.
"Investors are nervous due to Trump's protectionism policies and their hope is that his tax cut policies could perhaps save the day for them," said Naeem Aslam, chief market analyst at ThinkMarkets, in a note on Tuesday.
The greenback fell against a basket of currencies, dipping below 100 intraday, a low not seen since mid-November, and inching up to 100.21 in afternoon trade in Asia.
"Unwinding free trade agreements and imposing border taxes is seen by markets as a negative for the dollar," said Ric Spooner, chief market analyst at CMC Markets, in a note on Tuesday.
Media reports also cited U.S. Treasury Secretary-designate Steve Mnuchin's comments that the "excessively strong dollar may have negative short-term implications on the economy" as a reason for the dollar's drop.
But analysts noted that the comments needed context as media reports said the remarks were from a written response to a senator's question about a hypothetical scenario of a 25 percent rise in the dollar.