The Taiwan dollar surged to its strongest level in over two years on Monday, driven by optimism over U.S.-Taiwan trade negotiations and robust foreign inflows into local equities. The TWDUSD pair dropped 3.2% to 29.752, marking its lowest level since April 2022 and signaling a stronger Taiwan dollar.
The rally comes as Taiwanese officials entered preliminary trade talks with U.S. counterparts aimed at averting steep “reciprocal” tariffs proposed by Washington. Earlier in April, U.S. President Donald Trump announced a 32% tariff on Taiwanese goods, though its implementation was postponed by 90 days.
Market speculation also suggested the U.S. may be pressuring certain Asian economies to allow their currencies to appreciate as part of broader trade negotiations, though no formal statements have confirmed this. Notably, Taiwan’s central bank did not intervene in the currency’s sharp appreciation, sparking further assumptions that the rally is being allowed to continue.
In addition to trade-related optimism, the Taiwan dollar’s rise was fueled by foreign demand for Taiwanese tech stocks. Global investor sentiment toward the sector improved following a wave of strong U.S. earnings reports, attracting capital inflows into Taiwan’s equity markets.
Taiwan’s economic outlook remains closely tied to the U.S. and China, given its deep integration in the global tech supply chain. Hopes for improved U.S.-China trade relations further supported bullish sentiment toward Taiwan’s economy and its currency.
The combination of trade optimism, strong tech performance, and lack of central bank intervention created a perfect storm for the Taiwan dollar’s impressive rally, making it one of Asia’s top-performing currencies this month.


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