The New Taiwan Dollar surprisingly hits the 28 mark, and TSMC's billion-dollar hedging strategy is ready to go.

As capital flows into the Taiwanese stock market and the US dollar generally weakens, the New Taiwan Dollar has risen to its highest level in three years, astonishingly reaching a price of 28.999 before the deadline, officially breaking through the psychological barrier of 29. TSMC has raised 10 billion dollars overseas for hedging purposes, also fully preparing to respond to this wave of the New Taiwan Dollar appreciation Exchange Rate battle!

( Simply having New Taiwan Dollar wins! The volatile asset ETH has completely lost to New Taiwan Dollar this year, and the profit made from Bitcoin in USD has all been lost back ).

The New Taiwan Dollar has risen by 12% this year, and TSMC has raised 10 billion USD overseas for hedging.

Last month, the New Taiwan Dollar recorded its largest single-day increase since the 1980s, and so far this year, it has appreciated by over 12% against the US Dollar. This nearly unprecedented surge poses risks to Taiwan's export-dependent economy and pressures the life insurance industry that holds a large amount of US Dollar assets.

Severe exchange rate fluctuations have even affected Taiwan's largest company, TSMC. TSMC's President C. C. Wei clearly stated at the shareholders' meeting in June 2025 that for every 1% appreciation of the New Taiwan Dollar, TSMC's gross profit margin would decline by about 0.4 percentage points. TSMC's overseas subsidiary TSMC Global Ltd. will issue new shares worth 10 billion USD to reduce its foreign exchange hedging costs.

( The TWD keeps rising, and TSMC reduces foreign exchange hedging costs by raising 10 billion USD overseas )

USDTWD surprisingly sees the 28 level, the weak TWD does not return.

The weakening of the US dollar, combined with exporters selling off dollars and local asset management companies repatriating funds, has contributed to the rise of the New Taiwan Dollar.

Christopher Wong, a senior foreign exchange strategist at OCBC Bank, stated:

"To some extent, the New Taiwan Dollar may face the risk of entering a strong vicious cycle, as exporters and financial institutions rush to sell US dollars."

The attitude of the central bank has also influenced the actions of market traders. In Taiwan's export-oriented market, the central bank has traditionally allowed the currency to fall but not to rise. However, Central Bank Governor Yang Chin-long has recently stated several times that the appreciation of the New Taiwan Dollar reflects market mechanisms rather than deliberate manipulation by the central bank. It is neither a request from the U.S. side nor the result of a currency agreement between Taiwan and the U.S., and he has refuted the so-called rumors of the "Mar-a-Lago agreement." He emphasized that Taiwan has not been classified as a currency-manipulating country, and the central bank has not participated in any discussions regarding currency appreciation.

Traders believe that the New Taiwan Dollar has been rising by two dimes every day in recent days, and the central bank has not intervened. It is only a matter of time before the TWD breaks through 29. As of the time of writing, the USD to TWD exchange rate stands at 28.999, officially falling below the psychological barrier of 29.

This article discusses the NTD astonishingly reaching the 28 mark, TSMC's billion-dollar magnesium hedge is on the verge of being executed, first appearing in Chain News ABMedia.