It was expected that on Tuesday, Nancy Pelosi, the US House Speaker would be taking a trip to Taiwan. Right after the announcement, the value of the Taiwan dollar started lowering.
The price chart shows that the value of the Taiwanese dollar experienced a two-year low due to the expected visit of Nancy Pelosi.
For now, the major currencies from the Asian region are experiencing price plunges. These currencies are sticking to tight ranges and it is mainly due to the tensions of Sino-U.S.
Taiwan Dollar Performance
In the morning trading session, the trading value of the Taiwanese dollar rose. Still, the value of the Taiwanese dollar remained pinned around 30-. This was the level that was recorded for the Taiwanese dollar back in mid of 2020.
Due to the anticipation of Pelosi’s visit to Taiwan on Tuesday, the Monday morning trading session showed that the Taiwan dollar suffered a dip. In addition to Pelosi’s visit, the economic conditions of Taiwan are also suffering tremendously.
Performance of Yuan
Despite the rest of the currencies facing a downtrend in Asia, the Chinese yuan did not experience much of a downtrend. The price chart shows that the trading value of the yuan was largely unchanged throughout the anticipation and the economic downtrend in Taiwan.
The value of the Chinese yuan currently stands at 6.7704 versus the US dollar.
China Opposed Pelosi’s Visit
Pelosi’s visit to Taiwan has strongly been opposed by China and this is being reported through the local Chinese news channels. It was also revealed that Pelosi would also pay a visit to Taipei, which may happen the same day.
It has been confirmed that the House of Representatives Speaker will be touring all major regions of Asia.
Sino-US Relations to Worsen
According to the officials in the United States, China will not be taken lightly on the United States tour to Asia. There is a possibility that the Chinese Government may respond to such acts of the United States with military action. This may greatly increase the conflict between both countries even more.
It is because of China’s strong ties with Russia, which has been increasing the tension between China and the United States. It has been claimed by many reporting agencies that China kept its military forces close to the Taiwanese median line.
The warplanes and warships of China were patrolling close to the particular area in case any military response is required.
In the Asian market, the Japanese yen managed to grow by 0.7%, which appeared to be a strong performer compared to all other Asian currencies. The Malaysian ringgit was among the negative performers, which recorded a 0.1% decline in value against the US dollar.
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