Carry Trades Offset AI Stock Inflows in Taiwan Dollar Tug-Of-War
- Currency may start to weaken again amid carry trade pressures
- BNP Paribas sees risks biased toward currency falling to 33
Commuters ride an escalator in the Ximending area of Taipei, Taiwan.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
Taiwan’s dollar is poised to retest an eight-year low against the greenback as carry trade forces overpower the currency’s equity inflows tailwind.
The Taiwan dollar has slumped more than 5% this year and in April touched its weakest level in relation to the dollar since 2016. But the currency rebounded 0.4% in May, posting its first monthly gain this year.