NT Dollar Falls 1.3 Cents to Break Through 30.5 on the 26th; Fitch: Exchange Rate Volatility Affects Financial Performance of "This Industry"

Just as the market digested the Fed's "dovish" signals, U.S. President Trump again threatened to impose additional tariffs on countries that levy digital taxes on U.S. tech companies and to implement chip export restrictions. After opening higher during early trading on the 26th, the NT dollar against the U.S. dollar turned lower amid a decline in Taiwanese stocks, once again falling through the 30.5 mark.

On the 25th, Trump posted on social media that countries implementing digital taxes on U.S. tech companies are harming and discriminating against U.S. technology. Trump threatened that unless these discriminatory measures are revoked, he would impose additional tariffs on these countries and implement chip export restrictions.

During today's trading, the NT dollar against the U.S. dollar hit a low of 30.584, falling 1.3 cents, again breaking through the 30.5 mark. By midday, the NT dollar had depreciated by 0.96 cents, temporarily quoted at 30.544. Forex expert Li Qizhan stated that it could fall further, possibly breaking through the 30.7 mark.

International credit rating agency Fitch stated today that life insurance companies will continue to face challenges from the uncertainty of NT dollar exchange rate volatility and need to strengthen their asset-liability risk management capabilities to mitigate the actual economic losses caused by exchange rate fluctuations.

Wang Changtai, Senior Vice President of Fitch Ratings Asia-Pacific Insurance Ratings, said that since some NT dollar policy liabilities are supported by U.S. dollar assets, the exchange rate volatility of the NT dollar against the U.S. dollar due to tariff policies will continue to disrupt the stability of life insurance companies' operating performance in the short term.