Taiwan's currency is falling fast and its stock market is dropping, bad news for anyone holding Taiwanese assets but a relief for exporters who get paid in dollars.

• The Taiwan dollar fell sharply, touching its weakest level of this stretch and closing in on the 32 mark against the US dollar.
• Foreign investors dumped Taiwanese stocks heavily, pushing the main index down more than 300 points and forcing money out of the currency.
• Hotter US inflation has traders betting the Fed will raise rates, lifting the dollar and squeezing every major Asian currency — the Korean won worst of all.
• Warnings from AI heavyweights about slowing down spending sparked fears that the AI investment boom is cooling, hitting Taiwan's chip stocks directly.
• War in the Middle East and high oil prices are adding fresh inflation pressure worldwide, right as the US and Japan set rates this week.

Outlook: Taiwan's central bank is stepping in to smooth the fall, but with rate decisions due and foreign money still leaving, defending the 31 handle looks difficult.