The Taiwan dollar has experienced notable volatility and appreciation against the U.S. dollar in recent weeks, reaching its strongest levels since April 2022. On June 26, the currency surged past NT$29.165 per U.S. dollar, supported by over US$3.2 billion in trade and marking a steady rise from NT$32.017 in late April. The Taiwan dollar briefly slumped more than 2% in late trading on June 30, amid speculation of central bank intervention to curb the currency's strength. However, the currency rebounded sharply on July 1, rising as much as 2.4% to 29.199 per U.S. dollar. This surge was driven by large life insurance companies and exporters hedging against a weakening U.S. dollar, with the Taiwan dollar appreciating approximately 12% year-to-date due to foreign inflows and significant U.S. dollar selling by local exporters. In the following days, the currency continued to strengthen, reaching 28.886 per U.S. dollar on July 3 and 28.792 on July 4, marking its highest levels since early April 2022.