The Central Bank of the Republic of China (Taiwan) (CBC) is expected to maintain its benchmark policy rate at 1.375 percent at the monetary policy meeting scheduled to be held on March 23. Governor Perng added that the TWD’s quick advance shows no sign of central bank intervention and the local currency has held relatively stable these days without abrupt falls towards the end of trading sessions.

CBC Governor Perng Fai-nan testified at the Finance Committee of the Legislative Yuan on Thursday. He told the Committee that "I am confident that Taiwan will not, and should not, remain on the currency monitoring list, if the U.S. applies the same criteria from October last year", Scotiabank reported.

Federal Reserve governor Jerome Powell said Thursday in a CNBC interview that “the case for a rate increase in March has come together, and it is on the table for discussion,” raising the odds of a March rate increase further to 90 percent.

Further, a broadly strengthening dollar is expected to send USD/TWD modestly higher towards the 31.0 level prior to the Fed’s March gathering, together with sliding TWSE index.

"We stay with our short TWD/INR cross position with a target of 2.10 to chase a higher return via the so-called 'carry trade'," the report said.