labels: Taiwan dollar
The Taiwanese dollar weakened to its lowest level in a year, as dividend payment season pressures capital outflows.
The Taiwanese dollar weakened to its lowest level in a year, following a strengthening US dollar and the upcoming dividend payment season, with a total of over 2.5 trillion Taiwanese dollars, which may accelerate capital outflows from the country.Taiwan is considering paying dividends in dollars to attract foreign investors and reduce currency pressure.
Taiwan's capital market regulator is considering allowing listed companies to pay dividends in US dollars, reducing currency exchange procedures and transaction costs.The strengthening Taiwan dollar is putting pressure on the central bank, risking the US seeing it as currency manipulatory.
The Taiwan dollar has surged over 6% since the beginning of the year, boosted by the AI and chip industries. This has limited the CBC's intervention budget to US$4.5 billion, and the US is closely monitoring the situation, fearing excessive currency control measures.Taiwan dollar close to overtaking Chinese yuan as top carry trade option in Asia
Taiwan dollar is about to overtake Chinese yuan as the most popular carry trade option in Asia due to lower risks of interest rate and exchange rate fluctuations.
