Goldman Sachs: Forward exchange rate of the US dollar against the New Taiwan dollar is significantly lower than the spot rate, making shorting the currency pair very costly.

Goldman Sachs stated in the report that investors generally believe that the trend of the USD/TWD spot exchange rate should decline, but the forward exchange rate has a significant discount compared to the spot exchange rate, making the cost of shorting the USD/TWD very high. Goldman Sachs integrated recent discussions with emerging market funds, hedge funds, and other investors, indicating that the long-term accumulation of USD assets by Asian exporters may be the catalyst for the depreciation of the USD against Asian currencies, especially in Taiwan and Malaysia.