TAIPEI (Taiwan News) — A sharp rise in the Taiwan dollar is putting Taiwan’s machinery exporters under mounting pressure, the Taiwan Association of Machinery Industry warned on Friday.
TAMI said the Taiwan dollar’s appreciation is eroding export competitiveness and increasing foreign exchange losses, per CNA. On Friday, it closed at NT$31.06 (US$1.01) against the US dollar, marking its strongest performance since January last year.
TAMI Secretary-General Hsu Wen-tung (許文通) said this rapid movement makes it harder for exporters to secure overseas orders and maintain profit margins.
The appreciation comes as other Asian currencies, such as the Japanese yen and Korean won, have also strengthened recently. However, Hsu explained that both currencies depreciated more than the Taiwan dollar previously, leaving Taiwan’s exporters at a relative disadvantage.
From April 1-28, the Taiwan dollar rose 2.2%, the won 2.3%, and the yen 5.06%, while the Chinese yuan slipped 0.34%. Hsu explained that the machinery sector, which relies heavily on exports, is particularly vulnerable to these currency shifts.
TAMI is urging the government to allow more flexibility for the Taiwan dollar to depreciate, arguing that a weaker currency would help maintain Taiwan’s export competitiveness. The group pointed out that since early 2021, the yen has dropped 39.39% while the Taiwan dollar has fallen by 12.9%.
The association also highlighted challenges from US tariff uncertainties which are compounding currency volatility. It urged the authorities to consider allowing the Taiwan dollar to depreciate appropriately, aligning with Japan and South Korea.
