From Apple to Super-Powers, Everything’s Against Taiwan’s Dollar
- Central bank forecast to cut interest rate to lowest in region
- That may leave island’s currency Asia’s worst by end of 2016
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Caught between China on the one side and the U.S. on the other, Taiwan’s dollar is in danger of greater losses than any other emerging-market currency in Asia.
Strategists see the central bank cutting interest rates to the lowest in the region outside Japan to combat a shrinking economy, just as the Federal Reserve considers tightening monetary policy. Meanwhile, Taiwan’s new president has antagonized its neighbor -- and biggest export market -- by refusing to affirm the “One-China” principle. And falling sales at Apple Inc. are threatening to hurt some of the island’s biggest exporters.