New Taiwan Dollar's recent strength

Since mid Dec, 2016 until today, the NTD has been gaining strength

From 1 USD = 32.42 to 1 USD = 30.29 today. What’s the cause of it?

(source : http://www.xe.com/currencycharts/?from=USD&to=TWD&view=1Y)

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They are afraid that Trump would list Taiwan as a currency manipulator. Korea is doing the same thing.

I find it hilarious that they think people are that easily tricked but whatever.

Thanks for this update, I hadn’t been watching.

Ha, Taiwan’s dollar isn’t rising. The US dollar is falling (which makes it look like Taiwan is rising). Apparently, Trump announced in January that the dollar was too strong, and has been weakening.

This is precisely what I’m afraid of with Trump, that he prefers a lower dollar because he wants to make our goods cheaper for the world to buy more. If so, he will wreck our economy despite all the other good things he’s doing.

On the other hand, The Fed raised interest rates this month, and seems bent on this path, which is what I hope.

same thing with those brexit wankers. they are clearly happy with the pound sitting in the gutter for the last year.

first time i came to taiwan the money i brought with me from england went far! nowadays not so much.

A lot of foreign investment into Taiwan stock market…tends to push up the dollar and stocks. Then they do the old pump and dump…and make money from the stock price increase and currency appreciation …seen it every few years for 15 years here. Taiwan stock market is highly vulnerable to manipulation by insiders and foreign funds. Very high percentage of stocks are foreign fund owned.

Watch it happen again this year.

However the rise was lower than expected, which seemed to add some momentum to the dollar’s fall.

I’m wondering how long it will last. Want to send money back home. This is probably a great time to do so.

Well you can just convert it into USD in a foreign currency account if not in a hurry but yeah it’s pretty good now. It has been as low as around 29:1 five years ago.
I expect the TWD will drop when there’s a sell off in Taiwan from some negative external news and the foreign investors take their gains be masse. The government and local exporters will be relatively happy to see this happen to depreciate the currency.

No, that’s backwards. You would want to hold on to your Taiwan-earned dollars as long as it rises vis-a-vis the dollar, and exchange it at a more favorable rate later. If you change it to dollars now, and the dollar keeps sinking, so does your earnings.

I think nonredneck’s implication is that USD/TWD is relatively likely to rise at this point–what goes down must come up and all that.

Of course, one never knows.

The question is always, when is the peak strength of the NTD? It’s hard to predict these kind of things. That would be great if it went back to 1 USD to 29 NTD but you don’t know if that’s going to happen.

Oh, I see now. It is speculation. I’m thinking of recent history, when Bush let the dollar slide precipitately and for many years. You don’t wanna get under a falling piano.

The six most free-market presidents also were strong dollar advocates, they go hand-in-hand. Jefferson, Martin van Buren, Jackson, Cleveland, Harding, Reagan.

Interestingly, the 1896 election of McKinley was the most controversial election in our history, with many precincts getting up to 90% turnout. The Democrats wanted a silver standard, which would make the dollar very low, as low as 47 cents to the dollar. Republican strategy was to educate the public on money matters, which was very effective. They made posters with a Democrat dollar bill and candidate Bryan’s face on it with these words:

“IN GOD WE TRUST…for the rest of the 53 cents.”

Thank God the Republicans won. Too bad McKinley got assassinated. Theodore Roosevelt was no substitute for him.

Has the NTD’s recent strength caught your attention?

It certainly got the attention of Taiwan’s central bank:

Guy

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It’s weird when your salary in USD increases by 20-30% though it has barely budged in NTD. Great for the retirement savings, not so great for the US taxes.

Watching this happen now :slight_smile: