Democrats’ midterm sweep stirs concern over slower AI data-center development
The Taiwan dollar briefly weakened past the key level of NT$33 per U.S. dollar early Friday, crossing that threshold for the first time since April 2025, the Wall Street Journal reported at 0333 GMT. The move came as the AI stock selloff and foreign equity outflows weighed down the currency.
The currency last traded at NT$32.965 against the U.S. dollar after the island’s heavyweight chip makers pared some losses, the Journal said.
Taiwan’s currency is closely tied to the island’s equity market, which is dominated by chip makers such as TSMC, according to the report.
The Democrats’ sweeping victory in the U.S. midterm elections has raised concerns about a slowdown in AI data-center development, the Journal reported. Such a slowdown could weaken demand for Taiwan’s AI hardware.
Asian currencies traded mixed in early Friday deals, the Journal noted at 0040 GMT. But diminishing risk appetite after the overnight selloff in U.S. technology stocks might weigh on sentiment, the report said.
The Journal said the technology selloff was driven by earnings and by postelection fears about curbed data-center development.
Commerzbank Research analysts said in a note that the technology selloff appears to reflect a reassessment of the AI investment outlook and a positioning-driven liquidation.
Elsewhere in the region, the U.S. dollar was little changed at 157.73 yen, while the Australian dollar rose 0.1% to US$0.6938, according to LSEG data.