Taiwan's currency has been sliding fast, and the central bank says foreign investors pulling money out is the main reason — bad news for currency stability but Taiwan says it's still holding up better than peers.

• Foreign investors pulled over $54 billion out of Taiwan since July, driving the currency down against the dollar.
• The sell-off was triggered by renewed Middle East tensions, a global sell-off in AI and chip stocks, and a hawkish Fed signaling rates may stay higher for longer.
• The central bank stepped in earlier this year, selling billions of dollars to slow the currency's slide and keep it stable.
• Even with the drop, Taiwan's currency has weakened less than the Swiss franc, euro, and Thai baht this year, so the damage is relatively contained.
• Separately, a local commentator noted Taiwan is earning huge trade profits from the U.S. but still seeing money flow out, as companies invest abroad and wealthy individuals park cash overseas.

Outlook: Taiwan's central bank is expected to keep intervening to prevent sharp swings, but pressure on the currency will likely continue as long as foreign capital keeps leaving and global markets stay shaky.