The New Taiwan dollar has surged to its strongest level in decades, hurting the country’s exporters. The central bank has intervened, while officials negotiate in Washington to prevent new U.S. tariffs and avoid Taiwan being labeled a currency manipulator.
00:00The new Taiwanese dollar, or NTD, is surging, with the value of one U.S. dollar dropping
00:07below 30 NTD.
00:09It's part of the ripple effect of U.S. tariffs being felt across the globe.
00:14The currency saw large jumps of 3 and 4 percent against the dollar on Friday and Monday, its
00:19biggest gains since 1988, according to Bloomberg.
00:23But a stronger NTD also means Taiwan's products are more expensive for global customers.
00:28That could be a blow to Taiwan's export-oriented economy, where even modest changes to the
00:33exchange rate can cause pain.
00:48The exchange rate can also have a strong effect on the service sector.
00:52Taiwanese officials are currently negotiating in Washington to prevent U.S. President Donald Trump's now-paused 32 percent tariffs, a deal that could include currency-related commitments.
01:12Taiwan has previously met two out of the three criteria for being labeled a currency manipulator
01:17by the U.S. Treasury, which is due to release a new report on the topic soon.
01:22The sudden changes to the currency saw Taiwan's central bank step in to stabilize the market.
01:27All eyes are now on the U.S. Federal Reserve and whether it will reduce interest rates.
01:46A cut could cause the dollar to weaken even further.
01:50Until then, many Taiwanese businesses will be on alert.
01:53Dolphin Chun and Chris Gorin for Taiwan Plus.
