The Taiwanese dollar quickly gained in value compared to the US dollar, between Friday and Monday, before relapting this Tuesday. Trump customs duties continue to shake markets.
Trump’s customs duties have affected all the markets: fall in stocks, increase in interest rates, increase in gold prices and currencies seen as refuge values (including the Swiss franc). And since Friday, another value is still turned upside down, while this market part usually represents absolute calm: the Taiwanese dollar.
He thus gained 10% compared to the dollar in the space of two days of negotiation. A mad rise. Monday, for example, was the strongest daily increase in forty years, with 5.5%. Between Friday morning and Monday evening, the value of a Taiwanese dollar went from US $ 0.0311 to 0.0343. In the other direction, the value of a US dollar slipped from 32.125 to 29.174 Taiwanese dollars (-9%).
This Tuesday, the lessons fell from approximately 3%, at 0.0332 and 30.097 respectively. This adds to volatility, and the increase compared to Friday morning is still important.
Customs duties
But why do the courses oscillate so much? This has everything to do with Donald Trump’s customs duties … or rather negotiations with the United States to avoid these customs duties. Rumors wanted the island to have made concessions, including for example to strengthen its currency against the US dollar (to make American exports more competitive) … and the courses began to get carried away.
-The Governor of the Central Bank, Yang Chin-Long, even had to organize an emergency press conference on Monday evening to deny these rumors and calm the lessons. He also asked market commentators not to express himself in a speculative manner and “Avoid affecting the order and stability of the Taiwan exchange market and even affecting the real economy. ” Lai Ching-Te, president of the country, added by saying that this is false information.
Because yes, a local currency which gains in value compared to the greenback, a currency which refers for many international exchanges, makes exports more expensive in US dollars. And Taiwan exports a lot, including many electronic chips.
It remains to be seen whether the course will continue to undergo such shackles, depending on the news on a trade agreement between Taipei and Washington.
Hong Kong
But the Taiwanese dollar is not the only one to have fluctuated strongly in recent days. In Hong Kong, the HK dollar has also experienced turbulence in the same context. So much so that the central bank intervened to stabilize the courses and sold Hong Kong dollars to buy Americans … up to 60.5 and 7.8 billion respectively. A record in one day.
In short, customs duties continue to have impacts on the world markets, even those who are deemed to be calm and stable.
