Taiwan Dollar Surges Most Since May as Volatility Grows

The Taiwan’s dollar surged more than 2% in another day of volatility for the currency, as traders test the central bank’s tolerance for its strength.

The currency advanced 2.4% to 29.21 per US dollar in early trading on Tuesday, after sliding 2.5% on Monday. The move pushes the currency’s gain this year to 12%, the best performer in Asia.

The Taiwan dollar saw a pattern of sudden slumps in late trading Monday and Friday, fueling chatter that the central bank was intervening to curb strength in the currency. Authorities have been seeking to tamp down foreign-exchange speculation this year as a disorderly rally poses a risk to the export-reliant economy and puts pressure on the life insurance industry.

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