TAIPEI (Taiwan News) — The Ministry of Foreign Affairs on Tuesday denied speculation that the government had allowed the Taiwan dollar to appreciate against the dollar as part of tariff negotiations with the US.

The recent sharp appreciation of the Taiwan dollar on Friday and Monday sparked speculation that this was a concession demanded by the Trump administration, per CNA. In response, MOFA issued a statement late Tuesday evening saying the Cabinet's Office of Trade Negotiations had already clarified on Monday that exchange rates were not part of the ongoing Taiwan-US tariff discussions. 

The ministry stressed that the Central Bank is not participating in the tariff negotiations. MOFA added the bank is not a member of the US-Taiwan economic and trade working group.

Taiwan media outlets on Tuesday cited Bank of Korea Governor Rhee Chang-yong as saying the US is pressuring Asian countries to allow their currencies to strengthen. Rhee also said resumed trade talks fueled the appreciation of Asian currencies.

The ministry said Rhee's comments were from The Korea Times and referred more to market sentiment driving exchange rate volatility. MOFA then criticized Taiwan news sites for overinterpreting Rhee's remarks. 

On Wednesday, DPP Legislator Lin Chu-yin (林楚茵) said on Threads that Rhee’s comments were made in the context of South Korea’s economy. Lin said Taiwan has no way of knowing the details of US-South Korea negotiations, let alone commenting on them.

Lin said it was unlikely that South Korea would overstep its boundaries by commenting on Taiwan-US trade negotiations. However, Lin said it is regrettable that Taiwan’s opposition parties took advantage of the situation to “attack the US, undermine Taiwan’s morale, and even drag South Korea into the controversy to create diplomatic friction and affect Taiwan’s foreign relations.”