Taiwan Dollar Rallies

2025-07-01 04:03 By Farida Husna 1 min. read

The Taiwan dollar surged over 2% to 29.17 per U.S.

dollar in another volatile session on Tuesday, with traders attributing the rally to expectations of upcoming Fed rate cuts, broad dollar weakness, and sustained foreign capital inflows into the island.

The gain pushed the local currency’s year-to-date gain to 12%, cementing its status as Asia’s best-performing currency in 2025.

Strength in the Taiwan dollar has been underpinned by resilient tech exports—particularly semiconductors—and growing foreign interest in Taiwanese equities, fueled by optimism surrounding AI-driven demand.

The central bank’s hands-off approach has led to speculation that authorities may be tolerating a stronger currency to curb imported inflation.

However, the rapid appreciation has begun to raise concerns among exporters, who are grappling with shrinking margins.

Market participants now await signals from the central bank as the currency’s surge continues to test the limits of monetary policy patience.



News Stream
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The Taiwan dollar surged over 2% to 29.17 per U.S. dollar in another volatile session on Tuesday, with traders attributing the rally to expectations of upcoming Fed rate cuts, broad dollar weakness, and sustained foreign capital inflows into the island. The gain pushed the local currency’s year-to-date gain to 12%, cementing its status as Asia’s best-performing currency in 2025. Strength in the Taiwan dollar has been underpinned by resilient tech exports—particularly semiconductors—and growing foreign interest in Taiwanese equities, fueled by optimism surrounding AI-driven demand. The central bank’s hands-off approach has led to speculation that authorities may be tolerating a stronger currency to curb imported inflation. However, the rapid appreciation has begun to raise concerns among exporters, who are grappling with shrinking margins. Market participants now await signals from the central bank as the currency’s surge continues to test the limits of monetary policy patience.
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