The financial world witnessed a notable shift on Thursday as the U.S. dollar weakened and the South Korean won surged following speculations about U.S. intentions for a weaker currency. This development, accompanied by South Korea’s second-day currency gain and last week’s intergovernmental talks, highlights market sensitivity post U.S.-China tariff easing earlier this week.
This trend also mirrored Taiwan’s currency surge seen in early May post its trade negotiations with the U.S. Meanwhile, the Japanese yen and Taiwan dollar showed strengthening trends against the U.S. currency, despite mixed reactions in stock markets as broader trade policy concerns linger.
As investors eagerly await U.S. retail sales data for further market insight, the U.S. Treasury yield’s reaction to looming governmental fiscal policies remains a focus. Despite apprehensions from April’s events, economists foresee limited recovery for the dollar while Australian and New Zealand currencies gain strength.
(With inputs from agencies.)
