Latest news with #TaiwanDollar
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Taiwan Dollar Strength Spells Trouble for Tech Exporters, Insurers
Another flare-up in the Taiwan dollar's strength is unwelcome news for the island's exporters and life insurers. The New Taiwan dollar hit a three-year high against the greenback on Friday, bringing year-to-date gains to around 12%. It was last changing hands at 29.01 to the U.S. dollar, hovering at a key psychological level.
Bloomberg
a day ago
- Business
- Bloomberg
Taiwan Dollar Rises Past 29 Per Greenback for the First Time Since 2022
The Taiwan dollar climbed to the strongest in more than three years against the greenback, pressuring the island's export reliant economy and life insurers with large foreign-exchange exposures. The currency climbed about 0.5% to 28.978 US dollar on Friday, its strongest against the greenback since April 2022. The move pushes the Taiwan dollar's rally this year to 13%, Asia's best performer.
Yahoo
2 days ago
- Business
- Yahoo
TSMC Just Fired a $10 Billion Warning Shot at the Currency Markets
TSMC (NYSE:TSM) just announced a bold $10 billion stock issuance via its overseas unit, TSMC Global and this isn't just any capital raise. It's the largest forex-focused deal the company has ever done, signaling just how seriously Taiwan's top exporter is taking the recent surge in the local currency. This is TSMC's third such issuance since 2024, but it towers over the others in scale. The goal? To inject more flexibility into its foreign exchange hedging playbook as volatility climbs. Taiwan's dollar recently recorded its biggest one-day gain since the 1980s a spike that's making headlines and stirring unease across export-heavy industries. That spike isn't just academic. It's hitting the bottom line. CEO C. C. Wei told shareholders this month that operating margins have taken a noticeable hit thanks to currency appreciation. TSMC earns in USD, but its cost base is largely in Taiwan dollars and when the latter strengthens, profitability compresses. With local authorities eyeing speculation and banks tightening margin requirements, analysts say this share issuance could give TSMC a much-needed buffer. Robeco's Philip McNicholas explained the logic: a capital injection like this makes it easier to manage new and existing hedges when market conditions get rough. TSMC's role as the go-to chipmaker for Apple and Nvidia only magnifies the stakes. Most of its manufacturing is local, but its revenue is global a setup that becomes fragile when forex swings hard. The decision to issue new equity suggests TSMC isn't waiting for conditions to normalize. It's proactively defending its margins and reinforcing its hedge lines, even if it means some dilution. For investors, this could be a reminder that macro moves not just chips and nodes are shaping the semiconductor narrative right now. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Business
- Yahoo
TSMC Just Fired a $10 Billion Warning Shot at the Currency Markets
TSMC (NYSE:TSM) just announced a bold $10 billion stock issuance via its overseas unit, TSMC Global and this isn't just any capital raise. It's the largest forex-focused deal the company has ever done, signaling just how seriously Taiwan's top exporter is taking the recent surge in the local currency. This is TSMC's third such issuance since 2024, but it towers over the others in scale. The goal? To inject more flexibility into its foreign exchange hedging playbook as volatility climbs. Taiwan's dollar recently recorded its biggest one-day gain since the 1980s a spike that's making headlines and stirring unease across export-heavy industries. That spike isn't just academic. It's hitting the bottom line. CEO C. C. Wei told shareholders this month that operating margins have taken a noticeable hit thanks to currency appreciation. TSMC earns in USD, but its cost base is largely in Taiwan dollars and when the latter strengthens, profitability compresses. With local authorities eyeing speculation and banks tightening margin requirements, analysts say this share issuance could give TSMC a much-needed buffer. Robeco's Philip McNicholas explained the logic: a capital injection like this makes it easier to manage new and existing hedges when market conditions get rough. TSMC's role as the go-to chipmaker for Apple and Nvidia only magnifies the stakes. Most of its manufacturing is local, but its revenue is global a setup that becomes fragile when forex swings hard. The decision to issue new equity suggests TSMC isn't waiting for conditions to normalize. It's proactively defending its margins and reinforcing its hedge lines, even if it means some dilution. For investors, this could be a reminder that macro moves not just chips and nodes are shaping the semiconductor narrative right now. This article first appeared on GuruFocus.
Bloomberg
2 days ago
- Business
- Bloomberg
Taiwan's Central Bank Wards Off FX Speculators Piling Into ETFs
Taiwan told foreign investors to exit bets on the local dollar, taken through exchange-traded funds, as a 12% gain in its currency threatens its economy and companies. The strategy involves investors buying the island's ETFs and inverse ETFs, allowing them to accumulate holdings of Taiwan dollars while maintaining a neutral position in the stock market. Foreign funds have been 'repeatedly' deploying this playbook to speculate on the currency, according to Deputy Central Bank Governor Yen Tsung-ta.
