The Taiwanese dollar appreciated sharply to 29.935 against the US dollar currently, which hit a new high in over two years. Taiwan's foreign exchange market participants observed the market and believed that the US Federal Reserve will continue to hold interest rates in June and the US dollar is unlikely to weaken. Therefore, the Taiwanese dollar and other major Asian currencies are likely to appreciate further in the near future. 

It was expected that the Taiwanese dollar might have a high possibility to appreciate in the range of 28 to 30 against the US dollar. Some even thought it might go below 26 or reach 28 against the US dollar. 

Steel mills might have a low cost due to the appreciation. However, it might not be beneficial for the export industry in the long term. Taiwan's Central Bank might interfere properly in order to stabilize the currency in the market.