The Taiwan dollar weakened against the U.S. dollar after Central Bank Governor Yang Chin-Long sought to calm markets following a sharp two-day rally in the local currency.
Yang urged restraint from market commentators and warned manufacturers not to be swayed by exaggerated or misleading exchange rate analyses.
According to DBS strategist Philip Wee, the currency’s pullback reflects official efforts to rein in speculation. These include the central bank’s confirmation that it had intervened to counter what it viewed as overly aggressive expectations for Taiwan dollar appreciation.
TWD update, not a big retracement!
I posted on the TWD surge:
- MUFG on the Taiwan dollar move a “19-standard-deviation event”
- Surging TWD fuelling revaluation talk
This article was written by Eamonn Sheridan at www.forexlive.com.
