Taiwan's currency and stock market both fell as traders piled into bets that the Fed will raise interest rates, which is bad news for Taiwanese stocks and anyone holding the local currency.

• The Taiwan dollar briefly dropped hard, nearing the 31.8 mark, before the central bank stepped in to soften the fall.
• Hot US inflation numbers flipped the market from "maybe a rate hike" to "a hike is very likely," with some now betting on more than one.
• Foreign investors have dumped a huge amount of Taiwanese stocks over the past three days, the main force pulling both the market and the currency down.
• Taiwan's main stock index fell again, with big institutions selling heavily.
• Other Asian currencies held up better because Europe already raised rates and Japan is expected to speed up its own hikes, keeping the dollar's rally in check.

Outlook: The Taiwan dollar may briefly break past 31.8 but is likely to bounce around between 31.5 and 32 while central banks in the US, Japan, and Taiwan announce their rate decisions this week.