Overview

• The US dollar index fell 4.3% in April, marking its largest monthly decline in over two years, driven by President Trump's tariff policies and shifting investor sentiment.
• The Hong Kong Monetary Authority intervened twice in three days to maintain the Hong Kong dollar's peg to the US dollar, increasing the city's aggregate balance to over HK$100 billion.
• The Taiwan dollar surged 8% in two days to a three-year high, fueling speculation about its role in US-Taiwan trade negotiations, though Taiwan's central bank denied any deliberate currency revaluation.
• Other Asian currencies, including the Australian dollar, yen, and Chinese yuan, also strengthened significantly against the US dollar, reflecting broader regional trends.
• Investors await concrete progress in US-China and US-Taiwan trade talks, while the Federal Reserve begins its two-day meeting, widely expected to hold interest rates steady.