FX.co ★ Taiwan Dollar Reverses Losses

The Taiwanese dollar trimmed earlier losses, strengthening about 0.7% to 32.8 per US dollar after briefly weakening beyond 33, its weakest level since April 2025. The currency initially came under pressure amid a global selloff in technology stocks, which dragged down Taiwan’s tech-heavy equity market and prompted foreign investors to pare back their holdings of local shares. Additional pressure came from concerns that a shift in US policy priorities following the Democrats’ congressional election victory could slow AI investment and hardware spending.

Subsequently, exporter dollar selling and intervention by state-owned banks helped lift the Taiwanese dollar from its intraday low. The central bank has also urged exporters to offload their US dollar holdings rather than wait for more favorable exchange rates, and confirmed that it had intervened in the FX market last month. Even so, ongoing equity market weakness and continued foreign capital outflows are expected to keep the currency volatile.