The USD is still offered in all areas as investor flows move sharply to Asia, after a record of 6% in two days in the Taiwan dollar (TWD) and strong profits in the South Korean Won (KRW), the Chinese yuan and the Thai Baht (THB). The markets are reassessing exposure to US assets amid a weakening of growth in the US and erratic commercial policies, with the dollar under sustained pressure.
The sale in Asia continues, amplified by the speculation that Taiwan and other regional economies can be allowing the appreciation of the currency to relieve commercial tensions with Washington. The Singapore (SGD) dollar and the Malay Ringgit (MYR) have also been strengthened as capital flows to the region, challenging the historical currency depreciation tendency as a buffer in commercial disputes.
There is no news about tariffs, apart from the latest US taxes aimed at foreign filmmakers. However, the broader rhetoric of the commercial war persists, with analysts pointing out that the tolerance of Asia towards the strength of the currency can be changing in the midst of changing commercial dynamics and an increase in intraasic trade.
The FOMC will meet on Wednesday, with the markets attentive to signs of rates cuts later this year. The Bank of England will meet on Thursday, probably keeping rates without changes, but the approach will be in the future orientation as the divergence narrative between global central banks is deepened.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
