Taiwan Dollar Slumps as Global Markets React to Iran-US Negotiations

The Taiwan dollar experienced a volatile session on August 11, rising past NT$32.2 against the US dollar in early trading before reversing course due to safe-haven sentiment and dollar buying.

The currency closed at NT$32.278, down 4.7 cents from the previous day, with combined trading volume reaching $1.95 billion in the Taipei and Yuanta foreign exchange markets.

Currency traders attributed the Taiwan dollar's decline to stalled US-Iran negotiations over ending the war and reopening the Strait of Hormuz, which reignited concerns over energy supplies and pushed international oil prices higher.

The uncertainty also weighed on US equities, with major indices closing lower, while safe-haven demand kept the dollar elevated.