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.
Comments