Asian Currency Surge Fuels Dollar Downslide Speculation

The dollar declined as a rapid rise in Taiwan's currency suggested potential Asian currency revaluations to gain U.S. trade benefits. Taiwan's central bank downplayed White House influence, yet markets anticipate currency adjustments amid Sino-U.S. trade talks, impacting global financial strategies.

The dollar's decline continued on Monday under the pressure of a rapid surge in Taiwan's currency, fueling speculation that some Asian countries might revalue their currencies to achieve advantageous U.S. trade terms.

The Taiwan dollar rose over 3% to 29.654 per U.S. dollar, adding to a significant increase from Friday, as its central bank played down any U.S.-led influences. Market analysts, however, detected potential shifts.

Chinese yuan also reached near six-month highs amid trade discussion hints, despite ongoing distant negotiations with the U.S. President Trump expressed optimism for a trade deal without specifics, continuing calls for lower U.S. interest rates.

(With inputs from agencies.)