Taiwanese Dollar Surges Past NT$31.8 as Rate Hike Seen as 'Selling the News'
The recent rate hike by the U.S. Federal Reserve has led to a surge in Taiwan's currency, with the Taiwanese dollar breaking through NT$31.8 and touching an intraday high of NT$31.788.
This sudden increase is seen as a result of 'selling the news,' with investors interpreting the Fed's decision as being in line with market expectations.
The Taiwan dollar had been weakening for five consecutive sessions, but the rate hike has brought about a sharp rebound, with currency traders noting that policy uncertainty has been removed, allowing investors to focus on corporate earnings and the outlook for artificial intelligence technology stocks.
The RMB also strengthened in tandem, breaking past 6.7 per U.S. dollar to reach a four-year high, which market participants believe helped set a positive tone ahead of the upcoming 'Trump-Xi meeting.'