FX.co ★ Taiwanese Dollar Hits Lowest in Over a Year

The Taiwanese dollar weakened to about 32.2 per US dollar, its lowest level since April 2025, under pressure from a stronger greenback and seasonal capital outflows. The drop wiped out the gains recorded during last year’s rally, which had been driven by optimism over trade prospects and robust earnings in the technology sector. Selling pressure intensified as companies began paying out annual cash dividends, prompting foreign investors—who hold significant stakes in major Taiwanese chipmakers—to convert their dividend income into US dollars. This year’s cash distributions are expected to exceed NT$2.5 trillion, the highest level on record. At the same time, expectations that the Federal Reserve will keep interest rates elevated for longer continued to bolster the US dollar, adding further downward pressure on Taiwan’s currency.