TAIPEI (TVBS News) — The New Taiwan dollar (新台幣) opened at 30.125 against the U.S. dollar on Tuesday (May 6), gaining 2 cents before briefly surging to 29 — a dramatic movement of more than 1.5 dimes. The currency later retreated to around 30, marking a significant cooling after two consecutive trading days of extreme volatility when the exchange rate had swung by more than one full unit.
Central Bank (中央銀行) Governor Yang Chin-long (楊金龍) addressed the currency turbulence during a press conference on Monday, calling for an end to disorderly conditions in the foreign exchange market. Yang dismissed media speculation that the Mar-a-Lago Accord — a recent economic agreement between Taiwan and the United States — had triggered the New Taiwan dollar's appreciation. He emphasized that Taiwan's central banking authority had no involvement in the Taiwan-U.S. economic and trade working group.
President Lai Ching-te (賴清德), Taiwan's recently inaugurated leader, sought to calm markets through a video address, pointing to "psychological expectations" as the primary driver behind the currency's appreciation. Lai offered reassurance about Taiwan's economic stability, emphasizing that the island nation's fundamental economic indicators remain strong despite the recent currency volatility. ★