Taiwan’s Central Bank Says It Let Currency Soar to Reset Market

Taiwan’s central bank said it strategically let the local dollar rally earlier this month to let market expectations for gains play out, a move that allowed the currency to post its sharpest appreciation since the 1980s.

“It’s a tactic, we can cool down the market expectations by doing this,” Deputy Central Bank Governor Yen Tsung-ta said in response to questions from lawmakers about whether the Taiwan dollar’s rise was normal. “We had used similar tactics before.”