When the trade was opened on Monday, Taiwan's money expanded its acquisitions of another 2.5% against the US dollar. Taiwan's dollar rises 6.5% in two days, the largest two -day jump in decades.
The country's money has also increased nearly 10% since the beginning of April. Price jumping came as life insurers moved to hedge their exposed US portfolios and markets were afraid that a trade deal with Donald Trump could include the exchange rate.
Taiwan dollar jumped 6.5% in two days
Taiwan's dollar boosted a rare 7.5% in two trading sessions (Friday and now). Part of the ongoing USD weakness of the release post of the sun? Or something bigger brewing? Either way – Will hurt some players in the market. pic.twitter.com/oh5qn0ruqc
– Wilfred Frost (@wilfredfrost) May 5, 2025
Taiwan's dollar recorded an uprising of 2.5% as the trade opened on Monday, marked its two-day benefit at 6.5%. Money also realized a 10% climbing since the beginning of April and the beginning of Trump's trade policies.
The money jump shows how the impact of the US trade war is falling into the global economy.
Ju Wang, a strategist at the BNP Paribas in Hong Kong, argued that the sudden movement of money could damage the economic competitiveness dedicated to exporting the island and exposing Taiwan's life insurers to losses through their holdings of US properties.
The BNP strategist noted that local exporters panic and local lifers are under hearing, while outflows related to equity have stopped. Wang also acknowledged that the Taiwan Central Bank remains a single consumer but has not yet aggressively supporting the market. He believes that -FUELED speculation -Haka that money appreciation is part of trade talks.
The country has a large pile of overseas assets worth $ 1.7 trillion. Most of the owners are in the form of US bonds, including corporate wealth and debts, held by life insurers.
Wang also mentioned that many of those insurers were absent Hedged Their exposure to money, exposing them to losses when the US dollar collapsed. He argued that a rush to develop risks in a falling market could worsen the money transfer.
Taiwan president calls for ending 'wrong' news about us fx talk
Wang also maintains that the Jump Jump has been raised by the speculation that a possible trade deal with the US may include provisions to strengthen Taiwanese money and make it less competitive.
The central bank of Taiwan released a statement on Friday that denied the claims that the US Treasury Department had requested an appreciation for its money as part of a trade deal.
Wang argued that despite the non -economic officer who officially acknowledged that money appreciation was a point of communication, market expectations still indicate otherwise. He believes Noticeable Mar-a-Lago was given [accord]The emphasis on an excessive US dollar is a root cause of imbalance in the US trade.
The country in East Asian is currently the seventh largest largest US trading partner, driven by the sector of globally competitive semiconductor. The TSMC's stock, the largest semiconductor manufacturer in the world, dropped 1.3% on Monday. The country recorded an excessive trade of $ 74 billion with the US in 2024.
Taiwanese President Lai Ching-te said the country's excessive trade in the US was due to increased demand for tech products that specialize on the island, such as semiconductors. He also acknowledged that Washington has not been listed in Taiwan as a currency manipulator.
“Certainly because the cause of Taiwan-US deficiency has nothing to do with the exchange rate, the issue of rate exchange is naturally unusual in negotiations between Taiwan and the United States.”
-Lai Ching-Te, President of Taiwan.
The US dollar dropped 0.44% in Japanese Yen to 144.3 on Monday. Australia's dollar also hit a five -month height in early trade and climbed 0.4% to 0.6473. The US dollar also dropped more than 3% against the Taiwan dollar up to 29.772, adding to a 4.4% move on Friday. The President also noted that the Taiwan economy is well and that people should be confident.
The country's trade negotiation office has also denied that the White House is being forced for increasing some currency in Asia as part of a trade deal, which could cause markets to move.
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