by Xiaofei Xu and Ralph Jennings
GATA.org
The New Taiwan dollar’s recent surge, along with the appreciation of other Asian currencies, suggests a deepening of regional de-dollarization as investors rethink their investments in the U.S. currency amid Washington’s “extremely predatory” behavior toward foreign countries, analysts said.
Economies like Taiwan’s, with a historically high exposure to assets denominated in U.S. dollars, have taken a foreign exchange-led hit after the American currency weakened in recent weeks, wrote Francesco Pesole, foreign exchange strategist at Dutch bank ING, in a note on Tuesday.
“Local players are now seeking greater U.S. dollar hedging, as well as starting to diversify away from U.S. investments,” he added.