The U.S. dollar weakened again on Monday as Taiwan’s dollar surged sharply. This uptick sparked speculation that several Asian nations may be considering currency revaluations to secure advantages in trade discussions with the U.S.

Surge of the Taiwan Dollar

The Taiwan dollar appreciated more than 3% against the U.S. dollar, continuing a remarkable climb that witnessed a 4.5% increase last Friday, hitting a near three-year high. This surge has raised discussions about possible U.S. influence in this currency movements as part of ongoing trade negotiations.

Although Taiwan’s central bank denied any pressure from the White House regarding raising certain currencies for trade purposes, market participants speculate these adjustments may be occurring organically.

A senior Taiwanese financial executive shared anonymously with Reuters that the currency’s gains could be linked to U.S. strategies: “There is a lot of hot money entering Taiwan, and the central bank is permitting it. Many believe U.S. pressure is a factor here.”

Strengthening of China’s Yuan

In conjunction, China’s yuan has also appreciated, reaching its highest point in six months at 7.1879 per U.S. dollar. This rise can be linked to expectations that China may permit its currency to strengthen in the context of broader U.S.-China trade conversations.

While the Chinese Commerce Ministry has acknowledged its review of trade proposals from Washington, it illustrates that the two sides may still stand apart in their discussions.

President Trump commented during a recent TV interview that he perceived China to be eager for a deal, but he refrained from providing concrete details or timelines on potential agreements.

Market Sentiment During Trade Talks

The rises in both the Taiwan dollar and the Chinese yuan demonstrate that currency markets are diligently observing developments in U.S.-Asian trade relations. Market participants are expected to keep a close watch on upcoming economic reports and foreign exchange data, including China’s trade figures, to understand the ongoing impacts of these negotiations.