NT$ has experienced its most vigorous rally in 30 years: from depreciation panic to a single-month surge
The New Taiwan dollar has recently undergone an astonishing appreciation, with a nearly double-digit increase over just two trading days, marking a rare and intense fluctuation in decades. In early May, the USD/NT$ exchange rate dropped 5% in a single day, setting a 40-year record for the largest daily decline. During the session, it even broke through the psychological barrier of NT$30, touching a low of NT$29.59, shocking the market.
Meanwhile, trading volume in the foreign exchange market surged to the third-highest level in history, fully reflecting the market’s high concern over this wave of sharp exchange rate movements. Even more notable is that this appreciation has been particularly prominent among Asian currencies. In comparison, the Chinese yuan, Hong Kong dollar, Japanese yen, and Singapore dollar, while generally strengthening, have all seen gains far below that of the New Taiwan dollar. The Singapore dollar rose 1.41%, the Japanese yen increased 1.5%, and the Korean won surged 3.8%, but the NT$ displayed a standalone soaring trend.