FX.co ★ Taiwanese Dollar Slides Back to May Lows

The Taiwanese dollar has dipped beyond 31 per US dollar, marking its lowest point since early May, following volatile trading sessions. Last week, the currency experienced a surge after a joint declaration from Taiwan's central bank and the US Treasury. This declaration confirmed their commitment to abstain from manipulating exchange rates or the global monetary system for unfair competitive gains, specifying that foreign exchange intervention would only address volatility concerns. Additionally, the central bank clarified in another statement that the US did not request currency appreciation, and the joint statement is not connected to ongoing tariff discussions—dismissing rumors of a potential currency strengthening to bolster a trade agreement. Meanwhile, Taiwanese officials have indicated that discussions with the US are nearing completion, with local media announcing that both sides have consented to reducing the previously set 20% reciprocal tariff.