Finance center / comprehensive report: Cathay United Bank has noted that the Taiwan dollar appreciated significantly on Friday (the 2nd), with a one-day increase exceeding 1 NTD (approximately 3.3%), marking the largest single-day increase since 2000. Since the announcement of the equal tariff on April 2, the Taiwan dollar has become the strongest currency in Asia, with recent gains surpassing those of the yen, which has interest rate hike prospects.

Cathay United Bank indicates that the strength of the Taiwan dollar ranks among Asian currencies, likely influenced by recent reports suggesting that the U.S. may replicate the Plaza Accord, causing panic in the market. Additionally, the impending release of the U.S. currency manipulation report and ongoing tariff negotiations have made the central bank's actions more cautious, contributing to the significant appreciation of the Taiwan dollar.

Looking ahead, in the short term, a release of market sentiment is still needed, but considering the stabilization of the U.S. dollar and Treasury rates, market confidence in the U.S. is expected to gradually reflect. Furthermore, the complexities of the trade network make it difficult to replicate the Plaza Accord. Finally, Taiwan's equal tariff of 32% already surpasses Japan and Korea's tariffs of 24% and 25%. If the exchange rate appreciates significantly, it could further impact the competitive edge of exporters, a potential consideration for the government. Therefore, unless the Fed makes significant rate cuts, the Taiwan dollar will face challenges for further substantial appreciation this year.