Overview

• The US dollar has dropped 6.5% year-to-date, with increasing speculative short positions reflecting investor skepticism about US assets.
• Taiwan's dollar surged an unprecedented 10% over a few days, prompting intervention from its central bank to curb volatility and stabilize markets.
• The Hong Kong Monetary Authority executed record interventions to maintain its currency peg against the dollar, highlighting market dislocations.
• President Trump's tariff policies and shifting trade strategies have fueled uncertainty, weakening confidence in the dollar and disrupting global trade dynamics.
• Upcoming Federal Reserve and Bank of England meetings are being closely watched as markets assess the likelihood of further monetary policy shifts.