The Taiwan dollar fell to its weakest level since April 2025 on Thursday, dropping as much as 0.6% to 32.210 per US dollar, as stronger US dollar momentum and seasonal dividend outflows weighed on the currency. Taiwan is entering a sensitive period with domestic firms expected to distribute more than NT$2.5 trillion, or $77.7 billion, in cash dividends this year, the largest amount in Bloomberg-compiled data going back to 1990. Taiwan Semiconductor Manufacturing Company paid its quarterly dividend on Thursday, and Australia & New Zealand Banking Corporation's Khoon Goh said dividend repatriation by foreign holders was likely weighing on the Taiwan dollar, with the currency potentially moving toward 32.5 per US dollar as more payouts arrive later this month. Expectations for higher-for-longer US interest rates and a rebound in oil prices tied to renewed Middle East tensions have added pressure, while traders noted foreign investors remitted large sums overseas. Taiwan's central bank was said to have asked local banks to process some large US dollar sell orders on the day received, and Governor Yang Chin-long told lawmakers that good exports and moderate inflation provide a solid foundation for Taiwan to handle a stronger US dollar.
Taiwan Semiconductor Manufacturing Co. Ltd.TSMC's dividend payment contributes to TWD weakness and foreign repatriation, but impact on TSMC itself is indirect and minor.