Taiwan dollar tumbles almost 10% against U.S. dollar in 2022

Taipei, Dec. 31 (CNA) The Taiwan dollar plunged almost 10 percent against the U.S. dollar in 2022, the steepest decline in 25 years, as the greenback was bolstered by aggressive interest rake hikes by the United States Federal Reserve.

The Taiwan dollar closed at NT$30.708 against the U.S. dollar on Friday, the last trading session of the year, down NT$3.018, or 9.83 percent, for the year.

That was the local currency’s steepest drop against the U.S. dollar since 1997, when it tumbled NT$5.147, or 15.77 percent, to end at NT$32.638.

On the back of Taiwan’s strong exports and sound economic fundamentals, the Taiwan dollar extended its momentum from 2021, when the currency rose 2.95 percent against the U.S. dollar, into early 2022 to hit a closing high of NT$27.607 on Jan. 17.

The greenback rallied after that, however, helped by expectations of sustained interest hikes by the Fed, and it rose to its closing high for the year against the Taiwan dollar at…

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