Taiwan's Currency Soars! Exporters Panic as NT Dollar Climbs

Rapid Appreciation of the New Taiwan Dollar Sparks Frenzy in Currency Markets

Exporters in Taiwan are experiencing a wave of panic selling, fueled by the rapid appreciation of the New Taiwan Dollar (NTD) and the absence of strong intervention from the Central Bank. On April 30th, the NTD breached the 32 mark during intraday trading, returning to the 31 range. The day closed with a significant rise of 2.12 corners, settling at NT$32.017, marking its fourth consecutive increase and reaching a nearly six-month high.

Faced with the NTD's sharp rise, exporters engaged in a last-minute rush to sell their holdings at the end of the month. Foreign investors also contributed to the upward pressure through net inflows. The Central Bank intervened by purchasing foreign currencies to maintain market equilibrium, leading to a vibrant trading session that saw a massive US$2.999 billion in transactions.

The absence of the U.S. Treasury Department's exchange rate report did not deter the NTD's aggressive climb in April. According to a bank executive, the NTD has appreciated significantly from NT$33.182 at the end of March to NT$32.017, nearing the critical 32 level. Over the past month, the currency has gained NT$1.165, representing a substantial increase of 3.64%.