The Taiwan dollar slipped against a stronger US dollar, ending a three-day winning streak, though it still finished August with a solid gain — good for exporters, bad for anyone holding foreign currency bets on a weaker greenback.

• The US dollar jumped after Fed chair Warsh said inflation has not really improved and the Fed still "has work to do," pushing markets to bet on a September rate hike.
• Asian currencies fell across the board, with the yen sliding past 160 to the dollar and Taiwan stocks opening sharply lower.
• Foreign investors flipped to selling Taiwan shares, which pulled the local currency down with them.
• The Taiwan dollar still gained almost 2% in August, second only to the Korean won, after foreign money flowed back into stocks.
• More than half the items in the US inflation basket rose over 3% in the past year, suggesting price pressure is broad and rates may stay high for longer.

Outlook: The Taiwan dollar is likely to trade in a choppy range near current levels, with the next US inflation and jobs numbers deciding whether the rate-hike bets stick.