A lot of people look at this chart and wrongly assume the TWD move is about war. (If it was, it'd be going the other way) Most likely it has to do with the their central bank. The US trade talks with Taiwan pressured the Taiwanese to adjust their rates. As Taiwan has historically depreciated their dollar to help their largest exporters. [Taiwan claims the US didn't ask this] But hard to see why else they'd have such a sharp move. The problem this creates a crisis within Taiwanese markets. Taiwanese banks and life insurance companies mostly hold US bonds denoted in USD, but their liabilities are in TWD. As the TWD gains value against the USD, they are losing money and are forced to sell the US Treasuries. That in turn hurts the price of US treasuries, forcing them to sell faster. This is a similar set of tailwinds to what we saw in the Asian Currency Crisis in the late 90s. Now Taiwan's holdings aren't as large as somewhere like Japan - so it isn't likely to have huge damage on US rates, but it could be incredibly damaging for the Taiwanese market as a whole.