The Taiwan dollar (TWD) appreciated significantly against the US dollar (USD) today (5th), breaking the 30 TWD mark and reaching a historical high. Investors holding dollar assets should consider various strategies to respond to this situation.

According to recent trading data, TWD hit 29.590 in the early session, marking a nearly three-year high. While the afternoon session saw some pullback, it still closed around 29.950, showing an increase of over 1.1 TWD—equivalent to a 3.59% rise. Observers suggest that for dollar depositors, a strategy of gradually exchanging currencies could be beneficial, alongside closely monitoring market trends and the central bank's stance.

However, rushing to convert dollars back to Taiwan dollars could result in losing interest and incurring over 5% in foreign exchange losses. For investors in US bond ETFs, it is advisable to reassess the return structure to ensure that dividend income can offset currency risk. If holding overseas assets for the long term and not in urgent need of funds, experts generally recommend not over-adjusting positions due to short-term exchange rate fluctuations but maintaining a diversified portfolio and regularly reviewing the exchange rate's impact on overall returns, thereby strengthening hedging strategies.

Experts state that while the TWD's sharp rise is remarkable, the US dollar remains the primary reserve currency, and the rate of appreciation for the TWD may slow down. Future trends will largely depend on market perceptions of dollar assets.