Asian investors are reacting to fluctuations in the US dollar, leading to significant appreciation of local currencies, particularly Taiwan’s dollar, which has surged nearly 6% this month. This has prompted Hong Kong authorities to intervene, spending close to $17 billion to maintain their currency’s peg to the US dollar. Speculation over US trade talks and large offshore dollar holdings by exporters have intensified these currency movements, with concerns about the costs of hedging against further volatility in the market.