Taiwan dollar surges 2% as traders challenge central bank policy

Taiwan dollar jumps 2% as exporters pressure central bank

The Taiwan dollar surged over 2% as traders tested the central bank’s tolerance for currency strength, driven by exporter dollar sales and foreign inflows. Authorities aim to curb volatility to protect exports and insurers, but market pressures persist.

Taiwan dollar jumps 2% as exporters pressure central bank

The Taiwan dollar jumped over 2% in volatile trading as exporters sold dollars, testing the central bank’s limits on currency strength.

Recent swings come as authorities try to curb rapid appreciation, protecting exports and insurers. The currency’s drop on Monday likely helped local firms, which have struggled with its earlier rally, ahead of mid-year financial reports.

 

Compare Top Forex brokers and start trading and investing with a trusted partner

 

Analysts expect volatility to continue until there’s clarity on US-China trade. The central bank has signaled it will keep the forex market stable, but faces pressure from foreign inflows and corporate dollar sales.

A stronger Taiwan dollar could hurt insurers holding unhedged dollar assets. While intervention may slow the trend, a weakening US dollar could keep upward pressure on the local currency.

Last month, regulators warned against speculative trading and blocked foreign bets on the Taiwan dollar via ETFs.

 

Subscribe for our newsletter

Get Forex brokers reviews, market insights, expert analytics and education material right into your inbox for free!

You can unsubscribe any time by clicking the link in our letters.