TAIPEI (Taiwan News) — The Taiwan dollar fell for a fifth straight day on Monday, closing at NT$30.63 against the US dollar, its lowest level since May 3.
Trading activity was light, with just US$1.12 billion changing hands, as investors awaited US employment data for direction. Since July, the Taiwan dollar has generally weakened, and the trend has accelerated in recent weeks, according to CTEE.
Foreign investors have been taking profits following recent losses in Taiwan’s stock market and ahead of the US Labor Day holiday, contributing to the gradual slide. At the same time, exporters anticipating further weakness have held back from selling, helping prevent sharper declines.
Traders note that Taiwan’s Central Bank focuses more on preventing excessive appreciation than on stopping declines. While some interventions occur to manage drops, the policy effectively allows the currency to soften, offering exporters some relief amid unresolved US tariff negotiations.
Over the past 13 trading days, the Taiwan dollar has fallen in 12 sessions. Analysts say the currency could continue weakening this week, potentially surpassing NT$30.70.
On Friday, US inflation data, the personal consumption expenditures index, came in as expected, fueling expectations that the Federal Reserve may cut interest rates in September and causing the US dollar to retreat.
However, concerns remain that tariffs could push prices higher, leaving uncertainty over the pace of future rate cuts. Investors are now focused on August’s US nonfarm payroll report to gauge the direction of the US dollar and other currencies.
