The Taiwan dollar rose today, joining the rally of other riskier currencies, amid speculations that signs of faltering economic recovery in the United States will force the Federal Reserve to keep interest rates low for a longer period of time than was previously thought.
As many other higher-yielding currencies, the Taiwan dollar rallied after the US economy demonstrated the worst contraction since 2009. It led to speculations that the Fed will not be able to start raising interest rates anytime soon. Such view encouraged Forex traders to take more risk and buy currencies of emerging economies.
USD/TWD dropped 0.15 percent to 29.9470 as of 11:43 GMT today.
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