Group 1 - The core issue facing Asian investors is how to hedge against significant fluctuations in the US dollar, particularly in light of the recent volatility of the New Taiwan Dollar, which surged nearly 6%, marking the largest single-day fluctuation since the 1980s [1] - Taiwanese life insurance companies have accumulated approximately $700 billion in US dollar investments over the past decade, seeking higher overseas bond yields to meet policy obligations and attract depositors [1] - The cost of hedging against currency fluctuations has increased significantly, with the cost of using non-deliverable forward contracts to hedge New Taiwan Dollar fluctuations reaching 24%, well above normal levels [1] Group 2 - Some investors believe that as long as trade surpluses continue to generate a need for US dollars to flow back into the market, the risk of a significant currency collapse is low [2] - The Hong Kong Monetary Authority has intervened by purchasing nearly $17 billion since May to prevent the Hong Kong dollar from appreciating beyond its pegged range against the US dollar [2] - The Bank of Korea's governor has warned that as long as global trade uncertainties persist, volatility in Asian currencies will continue, driven by unpredictable outcomes in trade negotiations [2]