The New Taiwan dollar is approaching 33 yuan again. The central bank sharply pulled back from depreciation to close at 32.865 yuan in late trading.

The New Taiwan dollar approached 33 yuan again, closing at 32.865 yuan. (Photo by reporter Chen Meiying)

[Reporter Chen Meiying/Report from Taipei] Taiwan stocks continued their gains today and closed up more than a thousand points. Foreign investment oversold fell to 34.116 billion yuan. However, hot money continued to be remitted out. The exchange rate of the New Taiwan dollar against the US dollar fell to an intraday low of 32.97 yuan, approaching the 33 yuan mark again. However, the central bank made aggressive adjustments in late trading, directly confiscating more than 1 dime of the depreciation, and finally closed at 32.865 yuan, an appreciation of 1.7 cents. The total transaction volume in the Taipei and Yuantai foreign exchange markets was US$3.2155 billion.

The situation in the Middle East has slowed down and international oil prices have fallen, which has led to a rebound in U.S. stocks and a weakening of the U.S. dollar. Taipei's stock and foreign exchange markets opened higher in early trading, with the New Taiwan dollar once rising to 32.794 yuan. However, foreign investors sold more than 90 billion yuan of Taiwanese stocks the day before, and the demand for remittances continues today. The exchange rate quickly turned from appreciation to depreciation, once falling to 32.97 yuan in the afternoon, and closed in the red under the regulation of the central bank at the end of the day. It fluctuated by 1.76 cents throughout the day.

According to statistics from the central bank, as of 4 p.m., the U.S. dollar index fell 0.41%, and most major Asian currencies rose. The South Korean won topped the list with an appreciation of 1.06%, followed by the Singapore dollar by 0.26%, the RMB by 0.06%, the New Taiwan dollar by 0.05%, and the Japanese yen slightly depreciated by 0.03%.

Huiyin insiders pointed out that for the New Taiwan dollar to truly stabilize, the key is when foreign capital adjustment will come to an end. However, today the extent of foreign capital overselling has narrowed, and coupled with the central bank's continued adjustment, the exchange rate is expected to fall between 32.8 yuan and 33.05 yuan in the short term.

Follow up on the inflation data to be released in the United States this week. Among them, the United States will release the October consumer price index tonight, and the producer price index will be released on Friday. In addition, the speech of Federal Reserve Governor Waller is also attracting attention.