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Dollar hits fresh record low against Taiwan dollar

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Dollar trims losses slightly against yen after ISM data

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Fed seen on hold this week, less chance of June cut

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Euro, sterling gain ahead of central bank meetings

(Updates with U.S. morning trading)

By Chibuike Oguh

NEW YORK, May 5 (Reuters) - The U.S. dollar was mostly

lower against major currencies, including the yen and the euro,

on Monday as markets weighed continued uncertainty from

President Donald Trump's policies and their impact on the

economy.

The greenback slid to a fresh record low against the Taiwan

dollar to 28.8150 amid speculation that Taiwan was

letting its currency appreciate as part of a trade deal with the

U.S., or at least was unwilling to intervene to stop it rising

alongside sharp inflows in capital.

Trump doubled down on tariff-driven policies during an

interview on Sunday, reiterating that the duties on U.S. imports

would eventually make Americans rich. He announced on Sunday a

new 100% tariff on films made outside the U.S.

Markets have been affected by the fact that Trump is not

leaving his stance that tariffs are important, said Juan Perez,

director of trading at Monex USA in Washington.

The dollar was down 0.79% against the Japanese yen at

143.805. Against the Swiss franc, the dollar

weakened 0.57% to 0.822.

Trump said he would not attempt to remove Federal Reserve

Chair Jerome Powell, but repeated calls for lower interest rates

and called Powell a "stiff". The Fed meets on Wednesday and is

widely expected to leave rates steady following a solid March

payrolls report.

Perez said the U.S. dollar was being hurt the most by chaos

in the markets.

"I think we're returning today to...this very sour mood

and descent and this idea that overall you may not necessarily

rely on American markets the way you used to. And that's been

seen across Treasuries."

Markets now imply only a 37% chance of a Fed rate cut in

June, down from 64% a month ago. Goldman Sachs and Barclays both

shifted their cut calls to July from June.

The dollar trimmed its losses briefly against the yen

after the Institute for Supply Management report for April

showed a larger-than-expected pickup in growth in the U.S.

services sector, which accounts for two-thirds of the American

economy.

Chinese onshore markets were closed but the yuan traded

offshore hit its highest in almost six months at 7.1831

per dollar as investors wagered Beijing might let its currency

strengthen as part of trade talks with Washington. The yuan was

last up 0.23% to 7.194 per dollar.

In Europe, the euro was up 0.27% at $1.133025

and the pound was up 0.28% at $1.33050.

The Bank of England will meet on Thursday and is widely

expected to cut rates by a further 25 basis points to 4.25%.

Central banks in Norway and Sweden also meet this week and are

expected to keep rates steady.