Taiwan’s currency, the New Taiwan dollar, experienced its largest two-day rise in decades, gaining 6.5% against the US dollar as life insurers sought to hedge their US portfolio exposures amid concerns over a potential trade deal with Donald Trump that could impact exchange rates. The central bank’s limited market support has led to speculation regarding currency valuation negotiations, particularly affecting local exporters and life insurers with unhedged US asset holdings. The currency’s rise is compounded by fears that a stronger TWD could diminish Taiwan’s export competitiveness, particularly in its vital semiconductor sector.
