Taiwan Dollar Surges 3% Amid Broad US Dollar Slide

The Taiwan dollar jumped nearly 3% against the US dollar on Monday, leading a surge in Asian currencies and prompting speculation on trade-related currency strategies. US equities ended lower, with the Dow slipping 0.25%, the S&P 500 falling 0.6%, and the Nasdaq down 0.75%. Investor focus remains on US trade policy uncertainty, upcoming European PMI data, and the Federal Reserve’s rate decision this week.

Equities

Markets fell after President Trump’s announcement of a new 100% tariff on movies produced outside the United States. The S&P 500 dropped 0.64% to 5,650.38, ending a nine-day run of gains—its longest streak in 20 years. The Dow Jones fell 0.24% to 41,218.83, and the Nasdaq lost 0.74% to 17,844.24.

Streaming and media stocks came under pressure following the tariff announcement. Netflix lost 1.9%, snapping an 11-session winning streak. Amazon also dropped 1.9%, and Paramount Global was down 1.6%. Losses were trimmed late in the session, but the initial sell-off reflected concern over potential regulatory disruption to the entertainment sector.

Energy stocks led declines across sectors, with the S&P energy index falling 2% after OPEC+ said it would speed up output increases. That raised worries about rising supply amid uncertain demand. BP, which often tracks broader oil sector sentiment, was not traded due to the UK holiday.

Berkshire Hathaway Class B shares fell 5.1% after Warren Buffett announced he will step down as CEO. Although Greg Abel has long been seen as his successor, the formal step triggered a sharp reaction among investors assessing the future of the conglomerate post-Buffett.

Elsewhere, Skechers surged 24.3% after confirming a $9.4 billion take-private deal with 3G Capital. The transaction was one of the day’s largest market moves and helped offset broader weakness in the consumer sector.

Tyson Foods fell 7.7% after missing quarterly revenue expectations. The meat producer pointed to soft consumer demand and ongoing cost pressures. Inflation signals were also visible in macro data: the ISM services index showed rising activity in April, but also noted that prices paid by businesses had jumped to their highest level in over two years, adding to concerns about the impact of tariffs on costs.

Forex & Commodities

The US dollar remaine under pressure, weighed down by sharp gains in several Asian currencies. The Taiwan dollar surged 8% over two sessions before retreating slightly, following the conclusion of trade talks with the US in Washington. Although Taiwan’s central bank denied any formal agreement, markets appeared unconvinced. The Hong Kong Monetary Authority intervened to defend its peg, purchasing $7.8 billion to prevent the local currency from breaking the strong end of its trading band. Meanwhile, China’s yuan rallied 0.7% as markets reopened after a public holiday, and the offshore yuan held near a six-month high. The Australian dollar remained firm, near a five-month peak at $0.6467, and the yen steadied at 143.69 after a strong session on Monday. Against a basket of currencies, the US dollar index slipped to 99.73, continuing its recent decline after a 4.3% fall in April. Sterling edged up to $1.3303 and the euro strengthened to $1.1324.

Gold prices climbed as traders sought safety ahead of Wednesday’s Federal Reserve policy announcement and in response to fresh US tariff plans. Spot gold rose 0.9% to $3,362.69 an ounce, while US gold futures gained 1.5% to $3,370.40. Spot silver also rose 1.5% to $32.98. Trump’s announcement of a 100% tariff on foreign-produced films and his plan for further levies on pharmaceuticals have added to investor unease.

Oil prices rebounded more than $1 per barrel after hitting four-year lows, as bargain hunting offset concerns about oversupply. Brent rose to $61.38 and WTI to $58.24. However, recent OPEC+ output increases and lower forecasts from Barclays and Goldman Sachs continue to weigh on the outlook.