The Asia coin skyrockets, and the New Taiwan Dollar surprisingly sees the 29 mark. Is the Central Bank intervening?

Affected by the weakening of the USD, Asian currencies are collectively appreciating, prompting Central Bank interventions. The USD to TWD (USDTWD) plummeted from above 32 last Friday, hitting a low of 30.77. Although the Central Bank raised it to 31.064 towards the end, it broke the 30 mark as soon as trading opened today. The TWD has appreciated over 3% for two consecutive days.

The Asia coin skyrockets, and the Hong Kong authorities intervene.

According to Bloomberg, the Hong Kong Monetary Authority sold a record amount of HKD ( on Friday to prevent its appreciation and maintain the linked exchange rate system with the US dollar that has been in place for 42 years. The offshore RMB exchange rate reached its highest level since November. Meanwhile, the TWD ) has skyrocketed for two consecutive days, breaking the 30 barrier this morning.

This volatility indicates that concerns about a U.S. economic recession have intensified due to President Trump's ever-changing tariff policies, and the outflow of the global reserve currency could have a ripple effect on financial markets. Last week, speculative traders' bearish sentiment towards the dollar was stronger than at any point since last September, suggesting that investors are increasingly reluctant to hold U.S. assets.

In the wave of "selling off American assets", Asian currencies, including the yen and the renminbi, are benefiting from repatriation purchases and alternative investments. Although both Beijing and Washington seem to be softening their stance on the trade war, this strategy appears to remain unchanged, with Beijing indicating that it is evaluating the possibility of negotiations with the United States.

The strengthening of emerging market currencies helps attract foreign investment inflows and lowers import prices, but it may also weaken the competitiveness of their products globally, thereby harming the interests of exporters.

USD against TWD breaks through the 30 barrier

The exchange rate of USD to TWD (USDTWD) plummeted from above 32 last Friday, reaching a low of 30.77. Although the Central Bank pumped it up to 31.064 at the end of the trading session, it immediately broke through the 30 mark at today's opening. The TWD has appreciated over 3% for two consecutive days.

( TWD surges by seven dimes, Taiwan's Central Bank clarifies: Not under pressure from the United States for TWD appreciation )

During a questioning session at the Legislative Yuan, Executive Yuan President Su Tseng-chang emphasized that the New Taiwan Dollar is not under any pressure to appreciate. This trend reflects that countries are still adjusting to tariff trade policies. The government has also proposed industrial support plans, hoping to assist industries in weathering the impact from various aspects. Currently, the situation has not reached an "uncontrollable" state, and further developments will continue to be observed.

The Central Bank once again issued a press release indicating that in addition to the psychological impact of expectations on the New Taiwan Dollar exchange rate last Friday, the Taipei stock market rose 4.63% due to TSMC, leading electronic and financial blue-chip stocks to rise together. Foreign investors made a significant net purchase of NT$42.924 billion and brought in funds, which prompted the appreciation of the New Taiwan Dollar. The Central Bank has acted in a timely manner to adjust based on its responsibilities.

According to foreign exchange traders, recently investors selling US dollars triggered a wave of long liquidation. The Taiwan Central Bank, which usually does not intervene to prevent appreciation, did not take action during the trading session, only stepping in slightly before the lunchtime and closing to pump the market, seemingly welcoming this wave of TWD appreciation! Moreover, there is no buying pressure for US dollars below, indicating that the appreciation of TWD may have no bottom limit for the time being.

This article discusses the surge of the YB coin, with the New Taiwan Dollar astonishingly hitting the 29 range. Is the Central Bank intervening? First appeared in Chain News ABMedia.