Taiwan Dollar Falls to 14-Month Low as Dividend Season Intensifies Selling Pressure
Taylor Wilson
The Taiwan dollar fell as much as 0.6% to 32.210 per U.S. dollar — a 14-month low — erasing all gains from last May's historic rally. A record dividend season and broad dollar strength are driving the sell-off.
How far has the Taiwan dollar fallen?
The currency dropped to 32.210 intraday on Thursday, the weakest since April 2025.
This means → last May's sharp rally, which rattled global FX markets, has now been entirely reversed.
In plain terms = one year later, the Taiwan dollar is back where that surge started.
Why is it falling right now?
Khoon Goh, head of Asia research at ANZ, pointed to TSMC's quarterly dividend payment on the same day. Foreign investors hold a large share of TSMC stock, and converting those payouts creates direct selling pressure on the currency.
Total cash dividends from Taiwanese companies this year are expected to exceed NT$2.5 trillion (about US$77.7 billion) — the highest since Bloomberg records began in 1990.
This means → dividend season is not a one-off shock. More payouts arrive later this month, so conversion pressure will persist for weeks.
Is the strong dollar making things worse?
The Fed's higher-for-longer rate stance is keeping the U.S. dollar firm, adding external pressure on top of the domestic dividend drain.
In plain terms = the Taiwan dollar is being squeezed from both sides — internal outflows (dividend conversion) and external compression (strong dollar) — and the two forces point the same way.
What comes next?
Goh expects the currency to weaken further to 32.5, depending on the pace of upcoming dividend distributions.
This reflects the market's core question: whether the Taiwan dollar can stabilize once dividend season ends.
In plain terms = if the currency stays weak after the conversion wave passes, the problem is more than seasonal.
Content is for reference only, not financial advice.