Big Take The Dollar’s Dominance is Unwinding in Asia
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May 30, 2025 In this discussion, Ruth Carson, Bloomberg's foreign exchange expert based in Singapore, dives into the rising pressures on the dollar’s dominance in Asia. She highlights the recent surge of the Taiwan dollar, the largest since 1988, as a key signal of shifting investment trends. The conversation explores the implications of these changes for regional economies, the growing interest in alternative currencies, and how companies like TSMC are adapting. Carson also examines the potential for a broader move towards local Asian currencies, reshaping global financial dynamics.
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Taiwan Dollar's Historic Surge
- The Taiwan dollar saw a shocking 3% surge, the biggest since 1988.
- This sudden spike triggered a ripple effect across several Asian currencies and markets.
Dollar's Dominance Questioned
- The dollar dominates 88% of all global trades, making it central to global finance.
- Taiwan dollar's spike raised doubts if the dollar's dominance might be weakening.
Reverse Asian Financial Crisis?
- The Taiwan dollar surge sparked fears of a domino effect in Asia.
- This reverse capital flow contrasts sharply with Asia's 1997 financial crisis, which saw money leaving the region.