The New Taiwan dollar fluctuated by 1.37 cents during the session, and the central bank took action at the end of the day to keep the prefix 31

The exchange rate of the New Taiwan dollar against the U.S. dollar fluctuated today (19th). It once fell below the 32 yuan mark in early trading as Taiwan stocks plummeted, and then rebounded quickly, reaching a maximum of 31.872 yuan. In the afternoon, affected by foreign capital overselling and the shift of hot money to remittances, the exchange rate fell again It depreciated, reaching a low of 32.009 yuan, but in late trading it was pulled back to 31 yuan under the central bank's entry adjustment, and ended at 31.937 yuan, a slight increase of 0.8 cents. The intraday price difference between high and low reached 1.37 cents, and the trading volume increased to US$3.004 billion.

Taiwan stocks fell 589.33 points today, closing at 44,719.35 points, with a transaction value of NT$847.857 billion. The three major legal entities simultaneously oversold, with a total overselling of NT$70.848 billion, of which foreign and mainland capital sold over NT$41.639 billion, marking the second consecutive trading day of overselling. The movement of foreign capital has also become the main pressure on the Taiwan dollar to depreciate in the afternoon.

Huiyin people pointed out that the recent surge in 30-year U.S. bond yields mainly reflects the U.S. fiscal deficit, increased bond supply, and long-term inflation risks. It does not mean that the market has significantly increased expectations for the Federal Reserve's short-term policy interest rates. Therefore, the U.S. dollar has not followed U.S. bond yields to strengthen simultaneously. The U.S. dollar index has instead fallen back to around 99.4, and major Asian currencies have also generally strengthened.

According to statistics from the central bank, as of 4 p.m., the U.S. dollar index fell by 0.19%, the Korean won rose by 1.27%, the Japanese yen appreciated by 0.35%, the Singapore dollar rose by 0.11%, the RMB rose by 0.07%, and the New Taiwan dollar appreciated by 0.03%.

People from Huiyin said that the New Taiwan dollar's trend today was significantly weaker than that of major Asian currencies, mainly dragged down by the sharp decline in Taiwan stocks and the remittance of foreign funds. In addition to continuing to observe the situation in the United States and Iran and the trend of the US dollar, whether foreign investors continue to withdraw from Taiwan stocks and remit funds will be the key to whether the New Taiwan dollar can maintain the prefix 31.

In addition, the market will also pay attention to the minutes of the Federal Reserve (Fed) July meeting released tonight. Recent U.S. inflation and employment data have weakened, and market expectations for the Fed's September policy direction have significantly cooled. If the meeting minutes release a hawkish message, it may push up the U.S. dollar and U.S. bond yields again, further increasing short-term shock pressure on the New Taiwan dollar.