Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
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Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
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BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
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Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
The export orders in Taiwan eased in April, compared to the first quarter of the current fiscal, largely due to the remained flat majorly. However, Japanese demand for Taiwanese goods declined, which lent a slightly sluggish tone to Taiwan’s trade balance.
Further, imports declined to -9.6 pct on year compared to -14 pct during the three months ended Mar, 2016 as global commodity prices snapped their fall amid sluggishness in recovery of domestic demand. As against March figures, capital goods imports stood flat, while consumer goods witnessed a fall.
April trade surplus surged to six-month high of USD4.8 billion, with only USD 1.6 billion accounting for increase in foreign reserves, partly due to rise in the non-dollar reserve currencies. This received impetus from the outward financial investment by domestic residents, as a result of poor growth prospects and weaker yields in the domestic bond market.
"Overall, April trade data support our view that GDP growth will bottom out in 2Q, but remain subnormal. The central bank will likely continue facing pressure to cut rates at the June meeting to provide additional policy stimulus and foster growth recovery," DBS reported.
The possibility of third quarter Fed rate hike would continue to boost domestic capital outflows, a potential source of pressure that would weigh on the TWD exchange rates, DBS added.
