On Tuesday, the U.S. dollar faced challenges after an extraordinary surge in the Taiwanese dollar impacted other regional currencies, emphasizing the U.S. currency’s vulnerability. The Taiwan dollar had climbed to a three-year peak during recent trade talks with the United States, raising questions about its future trajectory.
Meanwhile, the Hong Kong Monetary Authority stepped in to prevent the Hong Kong dollar from exceeding its trading band against the U.S. currency, purchasing significant amounts to maintain stability. Following an extended break, China’s yuan saw gains, reflecting broader regional currency movements.
The focus remains on the evolving trade dynamics between Asia and the U.S., as well as the impending monetary policy announcements expected to impact the currency markets significantly. Investors continue to scrutinize U.S. dollar’s role as a global safe haven amid changing economic policies.
(With inputs from agencies.)
