The New Taiwan Dollar ignites the expectation for the appreciation of Asian currencies, which currencies are expected to strengthen?

Since May, the New Taiwan Dollar has soared nearly 10% against the US Dollar, fueling expectations of an appreciation of Asian currencies. Several foreign exchange traders and strategists have expressed doubts to reporters about the volatility of the New Taiwan Dollar. Although the monetary policy authorities in Taiwan have stated that this issue is unrelated to current trade negotiations, questions remain about why the department would allow such drastic fluctuations, especially when life insurance companies, retail investors, and exporters hold a large amount of unhedged US dollar positions. Although the notion of the "end of the US dollar" may be exaggerated, recent fluctuations in the US dollar have prompted more institutions to pay attention to which Asian currencies have similar structures to the New Taiwan Dollar. According to analysis by Goldman Sachs, aside from Taiwan, Malaysia has the largest proportion of US dollar long positions compared to GDP, followed by Thailand, the Philippines, and South Korea. Financial centers Singapore and Hong Kong hold the most US dollar assets and have also experienced significant currency appreciation.