The New Taiwan Dollar has dropped to a four-year low after the Japanese yen and the Korean won extended their slide.
On Friday Taiwan’s currency dropped 0.36% to NT$30.176 against one US Dollar to keep the country’s exports competitive with those of Japan and South Korea. Analysts said this is probably just the beginning of a currency war in Asia.
On Saturday Taiwan’s machine tool manufacturers called on the government to review the New Taiwan Dollar’s exchange rate. They said after the Japanese yen fell to its seven-year low, Taiwanese manufacturers are under tremendous price pressure from Japanese competition.
However, while Taiwanese exporters are feeling the pressure, other industries are set to profit from the plunging Japanese yen. On Saturday Taiwan’s TransAsia Airways said the falling Japanese yen has made traveling to Japan more affordable, which is expected to give a boost to Taiwan’s airline and tourism businesses.