Taiwan Dollar’s Dramatic Reversal Stokes Bets on FX Intervention

The Taiwan dollar saw a sharp move lower in late Friday trading, after earlier climbing past a key level for the first time since 2022, stoking speculation the central bank may have intervened to curb the rally.

State banks were seen aggressively buying the US dollar to slow the local currency’s appreciation, according to two traders, who asked not to be identified as they weren’t authorized to speak publicly. Taiwan’s central bank has been seeking to tamp down speculation in foreign exchange markets this year after the currency’s rally.

Taiwan’s currency trimmed some 0.7% of gains versus the greenback in ...