
The strengthening of various East Asian currencies vs the U.S. Dollar (USD) has been one of the talking points in financial markets over the holiday weekend. The case of the Taiwan Dollar (TWD) is particularly alarming, as the currency of the 'silicon island' has appreciated over 10% vs the USD in the space of just a few days. This is the strongest Taiwan dollar appreciation in over 30 years, according to DigiTimes.
Crucially, when a trading partner's currency gets stronger, it typically becomes more expensive to buy their goods. Taiwan's chips and manufacturing play a big part in the most coveted PCs and components. So, are we looking at even more upwards pressure on electronics heading to U.S. retail?