The Prime Minister of Malaysia sees the possibility of negotiating with America to reduce commissions

The US dollar fell again, on Monday, in the light of the strong increase in Taiwan’s currency, which has triggered the speculation that some Asian countries can re -evaluate their currencies in an attempt to obtain commercial concessions from the United States.

The Taiwanese dollar has risen by over 3 % to 29.654 compared to the US dollar, strengthening its standard gains of 4.5 percent Friday, to reach its highest level in about three years, according to “Reuters”.

Although the Taiwanese central bank denied the presence of the pressure of the White House to increase the value of some Asian currencies within the framework of a commercial agreement, the markets were monitoring any indication of a change in the policies up close.

“The Taiwanese dollar is witnessing the rhythm of ascent that I have never seen before,” said a high official of Taiwan’s financial sector, who refused to be identified because he was not authorized to speak with the media, in a declaration in Reuters. He added: «Hot flows in Taiwan and the central bank does not matter. Many believe that this is the result of the American pressure and I think this is really true. “

The Chinese Yuan has also risen to its highest level in about 6 months to 7,1879 Yuan for the dollar, in light of the expectations that Beijing will allow its high currency in the framework of possible commercial interviews with Washington, although the negotiations are still far from reaching an agreement.

The Chinese Ministry of Commerce has indicated that Beijing is studying an American offer to start the interviews on the customs duties imposed by President Trump, equal to 145 %, but the gap between the two parts is still wide.

In a television interview that broadcast on Sunday, the President of the United States Donald Trump reiterated his belief that China wanted to achieve an agreement, but did not provide specific time details or time. He also reaffirmed his call to reduce interest rates, describing the head of the “Federal Reserve”, Jerome Powell, as “the militant”, but excluded the search for his dismissal.

The Federal Reserve will hold its meeting on Wednesday, between strong expectations of keeping interest rates unchanged, after a strong employment relationship has been issued in March.

Markets are currently indicating only 37 percent to reduce interest in June, a 64 percent decrease in a month ago. Goldman Sachs and Barclays have also changed their expectations to reduce interest in July instead of June.

However, the dollar received limited support only from the work data and was fighting to maintain its earnings in the midst of a poor liquidity in the Asian markets due to the holidays in Japan and China.

The euro recorded an increase of 0.4 percent at $ 1,1343, far from the lowest level that reached $ 1.1266 last week, while the dollar index dropped by 0.2 percent to 99.635.

The US dollar decreased by 0.6 percent compared to the Japanese Yen, at 144.03 Yen, down to the highest level that reached on Friday at 145.91, since the strong drop in oil prices was formed in support of the Japanese commercial account, which is entirely based on fuel imports.

The problem of trust

Surprising fluctuations of American politics, including the imposition of sudden customs duties on foreign films, together with the political pressure on the independence of the “Federal Reserve”, influenced the confidence of investors in dollars, who reflected in the movement centered on capital.

Despite the increase in speculative sales centers on the dollar in the last week, indicating the expectations of its continuous weakness, this makes the market vulnerable to the sudden implications in the event of positive news.

“We see that there is an area for the continuation of the decline of the dollar use for years, in the light of the decline of the exceptional American and the redirection of investors their capital towards alternative markets”, said Sally Old, chief economist in the “NP” group. The group’s expectations indicate that the Australian dollar/US dollar will reach 0.70 by the end of the year, the US Dollar/Japanese Yen at 125, the euro/US dollar at 1.23.

The next event that can affect the dollar is the issue of the Institute for the offer management institute for the service sector, later on Monday, since a weakened reading could be renewed concern for the slowdown of the American economy.

In Great Britain, investors are awaiting the meeting of the Bank of England on Thursday, among the expectations to reduce the interest rate of 25 points basic to 4.25 percent, with the possibility of referring to greater facilitation in cash in the future.

“The market reaction to British bonds and pound pound will be determined on the bank’s directives and if the door is still open to reduce interest in June and the possibility of suggesting a reduction of up to 3.50 percent by December,” said Chris Weston, head of the Bibreston research department.

Central banks in Norway and Sweden also hold their meetings this week, with weighting to keep interest rates unchanged. In Australia, the Australian dollar has maintained its strength after Prime Minister Anthony Albaniz, in a historic state, won the elections that took place on Saturday. The Australian dollar climbed to $ 0,6472, after touching its highest level in five months, supported by the American work ratio, which strengthened the appetite for the risk globally.