Dollar Slips As Taiwan Currency Soars On Speculation Of U.S. Trade Pressure

The U.S. dollar dropped Monday as a sharp rally in the Taiwan dollar sparked speculation that Asian central banks may be engineering currency revaluations to gain leverage in U.S. trade negotiations. According to Reuters, the Taiwan dollar surged over 3%, adding to a record 4.4% gain on Friday, nearing three-year highs. A senior financial executive in Taipei told Reuters the pace of appreciation is unprecedented, fueled by inflows and possibly U.S. pressure. Asia-Pacific currencies strengthened, with the yen up 0.44% against the dollar and the Australian dollar up 0.4%. China’s offshore yuan hit a six-month high as investors speculated Beijing may allow currency appreciation to support trade negotiations, though talks with the U.S. remain stalled.