Indeed the worse the Taiwan economy does and the lower the interest rates go the better the NTD does. This makes a lot of sense. http://mobile.reuters.com/article/idUSKCN0ZG1CE
Right, USD strength was a given. No one could have seen this coming.
Taiwan's real interest rate is still much higher than the US (positive vs negative), so why wouldn't a strengthening TWD vs USD make sense? USD strength in anticipation of rate hikes is a gimmick that's almost completely over. Expect increasing TWD strength later this year and next year when US weakness becomes more obvious and looser monetary policy follows, regardless if Taiwan is easing too.
In the short to mid term, a Chinese debt crisis and yuan crash could bring the TWD down quite a bit. But even if this happens, long term the TWD will gain on the USD
Lets see what helicopter money will do