Taiwan Dollar Slump Seen Ending on China, Chip Outlook

  • Currency set to benefit from China’s attempts to support yuan
  • Turnaround in chip cycle may also help given TSMC’s dominance
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The worst may be over for the Taiwan dollar as China’s economic recovery and a rebound in the chip industry will support the beleaguered currency, according to analysts.

The island’s dollar is on course to weaken for a sixth month, the longest stretch since 2006, after foreign funds turned sour on its technology sector and risk sentiment deteriorated on slower growth in China.