SINGAPORE: The Chinese yuan touched a six-month low and the Taiwan dollar hit a four-year trough on Wednesday, as the dollar enjoyed broad demand after data showed the US economy in much sturdier shape than earlier thought.
The Taiwan dollar fell to 31.894 on the greenback at one point, its lowest level since September 2010, pressured by US dollar buying by Taiwanese importers as well as foreigners.
Market participants said they were now wary of intervention from Taiwan's central bank to prevent the Taiwan dollar from falling too rapidly.
The Chinese yuan touched a low of 6.2325 per dollar , its weakest level since late June. The yuan later reversed its losses and edged higher.
Although Asian currencies were mostly steady to lower versus the US dollar, the Singapore dollar held firm after profit-seeking traders trimmed bearish bets on the city-state's currency against the Malaysian ringgit.
The Singapore dollar edged away from a four-year low of 1.3258 versus the US dollar set on Tuesday.
Revised data on Tuesday showed that the US economy grew at a 5.0 percent clip in the third quarter, its quickest pace in 11 years, prompting markets to bring forward the timing of a likely hike in US interest rates and giving a lift to the dollar.
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