Dollar Dips as Asian Currencies Surge Ahead of Trade Talks
The U.S. dollar weakened as the Taiwanese dollar and other Asian currencies surged, amid speculation of potential currency revaluations to gain U.S. trade advantages. Despite President Trump's trade talk optimism, uncertainties persist, keeping the Fed's rate steady. Global reactions impacted various currencies, reflecting investor trust challenges.
The U.S. dollar faced fresh losses on Monday, driven by a sharp rise in Asian currencies, particularly the Taiwanese dollar, which fueled speculation of possible currency revaluations to win trade favors from the United States.
The Taiwanese currency soared over 3% against the dollar to reach 29.618, following a significant 4.5% increase on Friday. This added to two-year highs, despite denials from Taiwan's central bank regarding U.S. pressure for currency adjustments as part of trade agreements.
While President Trump expressed optimism about a potential trade deal with China, financial markets remained cautious. The Federal Reserve is expected to maintain current interest rates during its upcoming meeting, as the global currency dynamics evolved amid rising investor skepticism.
(With inputs from agencies.)
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