Intel stock spikes after report of possible US government stake
Investing.com -- The Taiwan dollar appreciated rapidly in early May, prompting the Central Bank of the Republic of China (CBC) to stabilize the foreign exchange market by purchasing U.S. dollars, as evidenced by a significant increase in foreign exchange reserves during the month.
Following the CBC’s market intervention, Bank of America had projected a slower decline in the USD/TWD exchange rate for the remainder of 2025, primarily influenced by global factors related to the U.S. dollar and global risk-on conditions.
On June 12, the USD/TWD exchange rate fell, creating downside risk to Bank of America’s end-2025 USD/TWD forecast of 28.8. The bank identifies equity inflows and increased export selling as the main factors driving the Taiwan dollar higher against the U.S. dollar.
Bank of America expects life insurance companies’ hedging activities to decrease due to the implementation of the Financial Supervisory Commission’s (FSC) latest regulatory relief measures.
The CBC’s shift from selling to buying U.S. dollars marks a strategic change in its approach to managing Taiwan’s currency, which has been strengthening against the U.S. dollar in recent months.
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