Taiwan stocks once soared more than a thousand points! The pressure on foreign capital’s remittances has not stopped, and the Taiwan dollar has depreciated and is approaching 33 yuan.

Taiwan stocks continued yesterday's rebound, rising by more than a thousand points this morning, hitting 43,135 points. The New Taiwan dollar's exchange rate against the U.S. dollar also appreciated by nearly 1 cent at the beginning of the session as the U.S. dollar weakened. However, as the gains in Taiwanese stocks converged, foreign investors' remittance demand after selling more than 90 billion yuan in Taiwanese stocks the day before also continued into the morning. The New Taiwan dollar turned from rising to falling, reaching a low of 32.964 yuan, approaching the 33 yuan mark again. At noon, it temporarily closed at 32.951 yuan, depreciating 6.9 cents. The trading volume of Taipei Foreign Exchange Brokerage Company was US$1.25 billion.

U.S. President Trump suspended the use of force against Iran, international oil prices fell, U.S. stocks rebounded, and the U.S. dollar weakened. Although Huida's board of directors launched an independent investigation into whether CEO Huang Jen-Hsun was targeted by foreign intelligence operations, causing Huida's stock price to fall by 4.27%, semiconductor stocks generally rebounded, with the Philadelphia Semiconductor Index rising by nearly 7%, and TSMC's ADR rising by more than 3%, driving Taiwanese stocks to jump short and open higher this morning.

The New Taiwan dollar opened at 32.84 yuan this morning. At the beginning of the trading session, it first reflected the weakening of the US dollar and once rose to 32.794 yuan, breaking through the 32.8 yuan mark. However, after 10 a.m., buying orders for the US dollar became stronger and the exchange rate quickly fell. The exchange rate fluctuated up to 1.7 cents in the morning.

The market will next focus on the U.S. Consumer Price Index (CPI) for October released tonight, as well as Federal Reserve Governor Waller's views on the economy and inflation. If oil prices continue to fall, it will help ease subsequent energy inflation pressures. However, if the core CPI released tonight is higher than expected, market expectations for the Federal Reserve to raise interest rates in December may further increase, supporting the trend of the US dollar. In addition, the key to the trend of the New Taiwan Dollar is foreign capital. If the strength of foreign capital remittances does not converge, the New Taiwan Dollar may still test the 33 yuan level again in the short term.