The New Taiwan dollar once fell by more than 2 cents, and in late trading the central bank adjusted to hold the price at 32.5 yuan.
Foreign investors continued to oversell Taiwanese stocks and remit hot money. The exchange rate of the New Taiwan dollar against the U.S. dollar once depreciated by more than 2 cents during the session today, falling below the 32.7 yuan mark, hitting a new low in more than 18 months. However, it was reported during the session that the central bank had relaxed the previous regulations on exporters' foreign exchange selling limits. In addition, the central bank adjusted again at the end of the day. The decline in the exchange rate converged in the afternoon, and finally closed at 32.592 yuan, a depreciation of 1.14 cents, with a total trading volume of 3.078 billion US dollars.
Intel's financial forecast was not as good as expected, and Amazon's financial report deepened the market's doubts about AI's huge investment expenditure and cash flow. U.S. stocks fell sharply last Friday, which caused Taiwan stocks to jump short and open lower today. Subsequently, U.S. stock futures rebounded, Asian stock markets converged, and Korean stocks staged a V-shaped reversal. However, Taiwan stocks still fell 291.69 points to close at 44,920.14 points. The total sales of the three major legal persons exceeded 52.691 billion yuan, of which foreign investors continued to sell more than 73.52 billion yuan.
The New Taiwan dollar faced heavy depreciation early today, mainly to digest the remittance demand after foreign investors sold more than 100 billion yuan in Taiwanese stocks last Friday. The exchange rate fell successively at three levels: 32.5 yuan, 32.6 yuan and 32.7 yuan, with the lowest touching 32.714 yuan, a heavy depreciation of 2.36 cents. In the afternoon, as exporters entered the market to sell foreign exchange, the supply of US dollars increased, and the downward pressure gradually eased. In late trading, under the adjustment of the central bank, the price returned to 32.5 yuan at the close.
Huiyin people pointed out that not only the New Taiwan dollar weakened today, but the South Korean won also depreciated sharply during the session. The key to the subsequent trend is still when the market confidence in AI technology stocks will stabilize, as well as the trend of foreign investors selling stocks and remittances. Due to the U.S. midterm elections and other variables this week, the financial market volatility may intensify. In the short term, we will first see whether the 32.8 yuan level is maintained. Once it falls below, it is not ruled out that it will move closer to 33 yuan. The number 32 is in danger.
However, Huiyin people also mentioned that exporters are full of US dollars. If they are optimistic about the current price, they will not rule out entering the market in advance to sell foreign exchange in order to meet the demand for New Taiwan dollars such as bonuses at the end of the year. At present, the central bank continues to operate and regulate the foreign exchange market based on the "willow theory".
In addition to focusing on the U.S. midterm elections this week, the market will also pay close attention to the financial reports of technology companies and the October non-farm payrolls report released on Friday. Among them, the financial reports of technology companies are an important basis for testing whether AI investments can be converted into revenue and profits, and will affect the trend of Taiwan stocks and foreign investment trends.
According to statistics from the central bank, as of 4 p.m., the U.S. dollar index edged up 0.04%. Among the major Asian currencies, the Korean won plunged 0.71% and was the weakest performer, the New Taiwan dollar depreciated 0.35%, the Japanese yen and the Singapore dollar fell 0.13% and 0.08% respectively, and only the RMB bucked the trend and appreciated 0.15%.
