The New Taiwan Dollar (NTD) showed a dramatic appreciation on the 2nd, as the Central Bank intervened at the end of trading to keep the exchange rate above 31 yuan. However, the market still lacks significant buying support. With intense selling pressure on the US dollar, especially ahead of the US Treasury's currency report, the Central Bank is cautious about the NTD's rise, predicting that it may break through the 30 yuan milestone this week, entering fierce contention.

Since President Trump took office, fluctuating policies have led to increased market uncertainty, causing the NTD to experience significant volatility, dropping to 33.2 yuan at the end of March. Following the announcement of reciprocal tariffs, the dollar plummeted, triggering a wave of appreciation in other currencies. Overall, in April, the NTD surged by 1.165 yuan (3.64%), marking the largest monthly increase since December 2023. On May 2, it broke through the significant levels of 32 and 31 yuan, ultimately closing slightly above 31 yuan, with a single-day increase of 9.53 cents (3.07%).

Analysts suggest that the sharp rise in exchange rates is attributed not only to inflows from foreign investors but also to exporters selling rapidly out of fear that the NTD will strengthen further. Unless the Central Bank intervenes aggressively, the NTD is likely to breach the 30 yuan critical level this week.