The dollar struggled to make headway on Tuesday as an unprecedented two-day surge in its Taiwanese counterpart spilled over to other regional peers and highlighted the fragility of the U.S. currency.

The Euro-zone’s headline inflation remained unchanged at 2.2% in April 2025, aligning with broader market expectations and suggesting stability in the region’s economy.

BCA Research analysts cautioned that China’s economic outlook remains bleak despite recent tariff de-escalation efforts between the U.S. and China, due to persistent headwinds, including a projected contraction in Chinese exports and delayed stimulus measures from Beijing.

 Asian stock markets were subdued on Monday, as Australian shares dropped after weak Westpac earnings dragged financials, while other markets saw only slight gains as investors awaited clarity on U.S.-China trade talks.

The U.S. economy added more jobs than anticipated in April, but this still represented a drop from the previous month given the heightened economic uncertainty due to U.S. President Donald Trump’s aggressive tariffs policy.

U.S. President Donald Trump said on Sunday evening that he had no immediate plans to speak with Chinese President Xi Jinping, but that dialogue between Chinese and U.S. officials was taking place, media reports showed.