The intraday trading chart for Taiwan’s currency is looking more and more crazed as suspected intervention by the central bank combats pressure on the exchange rate to strengthen.
Take Tuesday. The Taiwan dollar jumped as much as 0.7% against the greenback in morning trading, before giving up all its gains at the noon-time break. Upon resuming trade it strengthened sharply again, before ending the day down 0.1%. Such “smoothing” actions, as the central bank calls them, have meant the currency is one of world’s least volatile on a closing basis in the past month, while gains are capped at around 29.6 per U.S. dollar.
