FX.co ★ Taiwanese Dollar Retreats After Two-Day Rally

The Taiwanese dollar fell beyond the 30 per US dollar mark on Tuesday, ending a two-day upward trend and pulling back from the nearly three-year peak reached in the previous session. This recent surge in value had been fueled by speculation that the strengthening of Asian currencies, such as the Taiwanese dollar and Malaysian ringgit, could be part of wider initiatives to hasten trade agreements with the United States. Nevertheless, Taiwan's central bank refuted claims of any such agreement, emphasizing that the US had not requested a stronger Taiwan dollar. Concurrently, President Lai Ching-te urged the public to refrain from propagating false information regarding purported currency discussions with the US. As a leading manufacturer of advanced computer chips, Taiwan relies heavily on exports to both the U.S. and China, making it particularly sensitive to changes in global trade dynamics.