The New Taiwan dollar yesterday fell for a sixth day to its weakest level in three months, driven by equity-related outflows and reactions to an economics official’s exchange rate remarks.
The NT dollar slid NT$0.197, or 0.65 percent, to close at NT$30.505 per US dollar, central bank data showed.
The local currency has depreciated 1.97 percent so far this month, ranking as the weakest performer among Asian currencies.
Photo: CNA
Dealers attributed the retreat to foreign investors wiring capital gains and dividends abroad after taking profit in local shares.
They also pointed to reports that Washington might consider taking equity stakes in chipmakers, including Taiwan Semiconductor Manufacturing Co (台積電), that receive US CHIPS and Science Act funding.
The central bank on Wednesday rejected media reports suggesting that the NT dollar had appreciated 10 percentage points more than the yen and won against the greenback this year, stating that the local currency’s movements have remained relatively stable.
The central bank said that exchange rates are mainly determined by market supply and demand, with intervention limited to cases of excessive volatility or abnormal capital flows.
Compared with other Asian currencies, the NT dollar has shown relatively modest swings over the long term, it said.
With Taiwan heavily reliant on exports, particularly in semiconductors and other high-tech goods, exchange rate stability remains a key policy concern. A stronger NT dollar helps reduce import costs and inflation, but undermines exporters’ competitiveness — a balance the central bank seeks to maintain.
The clarification followed Minister of Economic Affairs J.W. Kuo’s (郭智輝) remarks to lawmakers earlier on Wednesday that industry groups would prefer to see a more stable exchange rate closer to the six-year average of NT$31 per US dollar for the rest of the year.
Local manufacturers have expressed concern about eroding competitiveness after Washington imposed a 20 percent tariff on Taiwanese goods, on top of existing levies, Kuo said.
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