Monday 05/May/2025 – 10:17 AM
The dollar fell again today, Monday, with the great rise in the value of its Taiwanese counterpart to other countries, which sparked speculation that some Asian countries are ready to conduct reassessments to obtain commercial concessions from the United States.
The Taiwanese dollar rose by more than 3% to 29.618 against the US dollar, reinforcing a record leap of 4.5% on Friday, which made it reach the highest level in two years.
The Taiwanese Central Bank denied the existence of any pressure from the White House to raise the value of some Asian currencies in the framework of a commercial deal, yet the markets are preparing for any transformation that may occur.
The Chinese yuan reaches its highest level in 6 months
The Chinese yuan reached its highest level in 6 months at 7.1980 against the dollar, where investors believe that Beijing may unleash its currency to rise in the framework of the China -American trade talks, although negotiations still seem to be unable.
While the Chinese Ministry of Commerce indicated that Beijing is studying an offer from Washington to hold talks on Trump’s 145%customs duties, the contrast between the two sides is still large.
In a television interview that broadcast on Sunday, US President Donald Trump reaffirmed that he would not try to dismiss Jerome Powell from the position of Federal Reserve Chairman before the end of his term in May 2026, but he described Powell as completely solids, repeating the call to reduce interest rates.
The Federal Reserve meets Wednesday, and it is widely expected to maintain interest rates as it is after a strong job report for March.
Michael Ferrol, chief US economist at GP Morgan, said: The work report does not leave any doubt that the Federal Open Market Committee will maintain interest rates without changing this week, and the ceiling of the discount is now higher for the month of June.
He added: In light of the state of great fog, and with the presence of multiple -sided risks to this double mandate, the Federal Reserve Committee will prefer to be patient until expectations are clear.
The markets now indicate that the possibility of reducing the interest rate by the Federal Reserve for June is only 37%, a decrease from 64% a month ago.
The euro rose 0.3% to $ 1.1333, away from its lowest level last week at $ 1.1266, while the dollar index decreased by 0.2% to 99.717.
The dollar fell 0.4% to 144.21 yen, away from the highest level of Friday, at about 145.91.
In Australia, the Australian dollar maintained its strength in the aftermath of the Saturday elections that witnessed the victory of Anthony Albanizi, the candidate of the Labor Party, in a historic second state as prime minister.
The Australian dollar rose slightly to 0.6466 dollars to reach its highest level in five months after the American job report reinforced the appetite for risk globally.
