FX.co ★ Taiwanese Dollar Falls to 11-Month Low

The Taiwanese dollar weakened beyond 31.7 per US dollar in early March, its lowest level since May 2025, as heavy foreign selling of local equities intensified pressure on the currency. Overseas investors registered roughly NT$95 billion in net stock outflows on Tuesday—one of the largest single-day withdrawals in over a year—deepening risk-off sentiment across both equity and FX markets. At the same time, escalating geopolitical tensions in the Middle East increased demand for the US dollar as a safe-haven asset, while rising oil prices stoked worries about global inflation and the future path of interest rates, weighing more broadly on Asian currencies. Short-term USD/TWD forwards traded above 32, signaling that markets anticipate additional downside for the Taiwan dollar, and trading volumes spiked to multi-year highs as investors reacted to the heightened uncertainty.