There is a strong wait-and-see atmosphere before the release of US inflation data, with the New Taiwan dollar fluctuating around 31.5 yuan
Quick Look
- Before the release of U.S. inflation data, the market had a strong wait-and-see atmosphere.
- Taiwan stocks had fallen more than 300 points in early trading, and the NT$/USD exchange rate was settling around 31.5 yuan.
- The war in the Middle East pushed international oil prices to exceed 100 U.S. dollars per barrel.
AI-generated summary
Why It Matters
The market is awaiting the release of U.S. inflation data and is also paying attention to the impact of the situation in the Middle East on oil prices and the policy trends to be announced by major central banks.
There was a strong wait-and-see atmosphere before the release of US inflation data, with the New Taiwan dollar fluctuating around 31.5 yuan. (Photo by reporter Chen Meiying)
[Reporter Chen Meiying/Taipei Report] Before the release of U.S. inflation data, the wait-and-see atmosphere in the market became stronger. Taiwanese stocks pulled back from their gains. They once fell more than 300 points in early trading. The New Taiwan dollar fell into consolidation around 31.5 yuan against the US dollar. It temporarily closed at 31.525 yuan at noon, down 2 points. The trading volume of Taipei Foreign Exchange Brokerage Company was 977 million US dollars.
The war in the Middle East continues to rage, and international oil prices have exceeded US$100 per barrel. However, some safe-haven funds have turned to the Japanese yen. In addition, the market is waiting for the US producer price index (PPI) to be released tonight and the consumer price index (CPI) to be released on Friday. The US dollar index has not fluctuated much.
Please read on...
The Japanese yen is still the focus of the Asian currency market, but its short-term gains have been significant. In the past two days, it has fluctuated around 153 to 1 US dollar, a 7-month high. The RMB and South Korean won are also hovering near the 3-year and 2-year high levels respectively.
An executive from Huiyin pointed out that the Taiwan stock market entered a consolidation period after hitting highs. It dropped more than 300 points in early trading today, and the momentum of foreign capital inflows slowed down. The New Taiwan dollar may continue to consolidate at 31.5 yuan in the short term, waiting for clear market information.
The New Taiwan dollar opened at 31.53 yuan today, with a high of 31.49 yuan and a low of 31.535 yuan in morning trading.
The market will next focus on this week's U.S. inflation data to see whether rising oil prices will further increase inflationary pressures; at the same time, next week will be the "Super Central Bank Week". The Federal Reserve, the Bank of Japan and the Taiwan Bank will successively announce the latest policy trends, and the subsequent trends of the US dollar, Japanese yen and New Taiwan dollar will also be affected.
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What to Watch
AI outlook — possibilities, not facts
After the release of US PPI and CPI data, the New Taiwan dollar exchange rate will choose a direction around 31.5 yuan based on the direction of inflationary pressure.
Likely · Within days
If U.S. inflation data is higher than expected, the Taiwan dollar may depreciate further; if it is lower than expected, it may rebound.
Possible · Within days
Open Questions
- How will US PPI and CPI data affect the Federal Reserve's interest rate decisions?
- Will the war in the Middle East escalate further, pushing oil prices to higher levels?
- What policy stance will Taiwan’s central bank adopt during Super Central Bank Week?
