TAIPEI (TVBS News) — The New Taiwan dollar surged past key benchmarks for the second consecutive day, reaching NT$29.6 (US$0.99) early Monday (May 5). The currency's swift appreciation, breaking the NT$31 and NT$30 marks shortly after the market opened, propelled it to its strongest position since February 2023, sending ripples through Taiwan's export-oriented economy.
Exporters voiced mounting anxiety over the currency's rapid strengthening, with industry representatives warning that continued appreciation could force vulnerable Taiwanese businesses to shutter operations. They called on Taiwan's Central Bank to implement effective measures to stabilize the exchange rate. The dramatic appreciation reached 7.9%, with the New Taiwan dollar climbing from NT$32.017 (US$1.07) on April 30 to NT$29.672 (US$0.99) by Monday morning.
The currency's sharp rise over the past two trading days triggered a frenzied rush among Taiwanese to purchase suddenly cheaper U.S. dollars and Japanese yen. This overwhelming demand crashed several banks' online platforms, leaving frustrated customers unable to log in and sparking complaints across social media channels. According to Taiwan's Central Bank, the New Taiwan dollar's dramatic surge last Friday set a record for the highest single-day appreciation since 1993, closing at NT$31.064 (US$1.04). Initially, currency traders had anticipated a resistance test between NT$30.8 and NT$30.2.
The exchange rate, however, quickly broke below the psychological NT$30 barrier within an hour of Monday's market opening, with the New Taiwan dollar continuing to strengthen to NT$29.710 (US$0.99) by 9:40 a.m. Taiwan's Central Bank attributed this short-term spike to rampant domestic rumors circulating throughout financial circles, which had fueled strong appreciation expectations among businesses and currency traders. ★