- The Taiwan Dollar’s sharp two-day rally has triggered broader strength in Asian currencies as investors shift away from the U.S. dollar.
The Taiwan Dollar surged more than 5% against the U.S. dollar on Monday, briefly pushing USD/TWD below the 29.00 mark.Â
The two-day rally—totaling nearly 10%—is the sharpest in over three decades. But Taiwan isn’t alone. A broader wave of U.S. dollar selling has lifted several Asian currencies, including the Singapore Dollar, South Korean Won, Malaysian Ringgit, Chinese Yuan, and Hong Kong Dollar. Â
Goldman Sachs reported on Tuesday that investor positioning has shifted significantly, with clients moving from short yuan positions to long ones—suggesting a growing expectation of continued U.S. dollar weakness.Â
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