The Taiwan dollar has experienced notable volatility against the US dollar over recent months, reaching its strongest level since April 2022. On June 26, the currency surged past NT$29.165 per US dollar, driven by over US$3.2 billion in trade and a year-to-date appreciation of approximately 12%, supported by foreign inflows and significant US dollar selling by local exporters. The currency continued to strengthen, rising as much as 2.4% to 29.199 per US dollar by July 1, with large life insurance and export sectors hedging against US dollar weakness. The Taiwan dollar peaked at 28.792 per US dollar on July 4, marking its highest level since April 7, 2022. However, the currency later declined, dropping 0.4% to 29.644 per US dollar by July 29 and extending its decline to the lowest level since June 11 by the end of July. The weakening trend accelerated following US President Donald Trump’s July 31 executive order imposing reciprocal tariffs on US trade partners, effective August 1. This tariff announcement contributed to the Taiwan dollar falling below the 30 per US dollar level, alongside a 1.3% drop in Taiwan stocks and a decline in Taiwan Semiconductor Manufacturing Company (TSMC) shares by NT$15 to NT$1,145 at the Taiwan Stock Exchange opening on August 1.