The Taiwan dollar's depreciation eased in the afternoon, falling by 4.63 cents in a single week, making it the weakest currency in Asia.

The New Taiwan dollar still dropped 4.63 cents in a single week.

Taiwan stocks rebounded in tandem with Asian stock markets, but the exchange rate of the New Taiwan dollar against the U.S. dollar continued to digest the remittance pressure from foreign capital after a huge oversold the day before. It fell below the 32.5 yuan mark in early trading, hitting a low of 32.52 yuan. In the afternoon, as foreign capital remittance pressure eased, and the central bank actively entered the market to adjust, the decline sharply converged, and finally closed at 32.338 yuan, a depreciation of 7.3 cents. The trading volume of Taipei Foreign Exchange Brokerage Company was 3.293 billion U.S. dollars, less than half of yesterday.

The New Taiwan dollar has been depreciating all the way this week, from falling below 31 yuan to falling below the 32.5 yuan level during the session, with a cumulative loss of 4.63 cents in a single week, the weakest performance among major Asian currencies, with three consecutive weekly losses.

Taiwan stocks rose 141.39 points today to close at 47111.26 points. The three major legal entities collectively sold more than 67.807 billion yuan, of which foreign investors continued to sell more than 46.147 billion yuan. However, the amount of overselling has been significantly reduced compared with the previous day's historical volume of more than 300 billion yuan.

Huiyin sources pointed out that foreign investors sold more than 300 billion yuan of Taiwanese stocks yesterday, setting a historical record. Some of the funds from previous stock sales continued to be repatriated today, putting the New Taiwan dollar under heavy depreciation pressure in early trading. However, the strength of foreign remittances weakened in the afternoon, coupled with the fall of the US dollar and the central bank's active adjustment, the exchange rate depreciation quickly converged.

Huiyin analysts analyzed that judging from the fact that the trading volume in the afternoon was significantly lower than that in the morning session and the exchange rate depreciation has converged, the short-term depreciation of the New Taiwan dollar has shown signs of easing, but whether it can truly stop the depreciation depends on the movement of foreign capital. In particular, Taiwan's technology stocks are closely linked to U.S. stocks. The Philadelphia Semiconductor Index has been in the dark for seven consecutive years, with a cumulative decline of more than 11%. Although there are opportunities for a deep rebound in the short term, the market still has doubts about AI investment returns, corporate financing risks, and the direction of U.S. interest rates. It is still difficult to confirm that the correction of technology stocks has ended.

Huiyin people believe that if the Fei-Hai Index stops falling and stabilizes, it will help ease the selling pressure on Taiwan's technology capital stocks, thereby reducing the pressure on foreign capital to remit; conversely, if U.S. technology stocks continue to decline, foreign capital may continue to adjust Taiwan stocks, and the New Taiwan dollar will still be under pressure to test back to the 32.5 yuan mark. In the short term, in addition to observing the trend of the U.S. dollar and the central bank's adjustment efforts, whether U.S. technology stocks can stop their decline will be an important variable affecting the trend of the New Taiwan dollar next week.

According to statistics from the central bank, as of 4 p.m., the U.S. dollar index fell 0.21%, and major Asian currencies were mixed. Among them, the Japanese yen depreciated 0.09%, the New Taiwan dollar depreciated 0.23%, the RMB appreciated 0.07%, the Singapore dollar appreciated 0.22%, and the Korean won rebounded strongly by 0.71%, which was a relatively outstanding performance.