The central bank and exporters join forces to sell foreign exchange! The New Taiwan Dollar turned red in late trading, ending its 4-black streak.

Taiwan stocks rebounded strongly today. The exchange rate of the New Taiwan dollar against the U.S. dollar turned from depreciating to rising in late trading due to the fall of the U.S. dollar and the joint efforts of the central bank and exporters to sell foreign currencies, ending four consecutive losses and closing at 32.073 yuan, an appreciation of 1.2 cents. The trading volume of Taipei foreign exchange brokerage companies shrank to US$2.224 billion, less than half of yesterday.

The New Taiwan dollar opened at 32.1 yuan today. In early trading, it continued to digest the remittance pressure caused by foreign capital's massive overselling the day before. It hit an intraday low of 32.228 yuan, down 1.43 cents. As exporters entered the market to sell foreign exchange and the central bank actively adjusted, the decline gradually converged. In the last half hour, the price rose from a depreciation to the highest price of the day.

Taiwan stocks rose 284.52 points today to close at 48,625.83 points. The three major legal persons collectively sold more than 15.397 billion yuan, of which foreign investors continued to sell more than 20.037 billion yuan.

People in Huiyin pointed out that today the central bank and exporters entered the market to sell foreign exchange, which drove the exchange rate from depreciating to rising in late trading. However, foreign capital still sold more than 20 billion yuan, and the flow of funds has not yet improved significantly. The market will next focus on U.S. inflation data and TSMC's legal meeting. If the U.S. dollar strengthens due to rising inflation, the New Taiwan dollar may still face depreciation pressure again; conversely, if the U.S. dollar falls, foreign overselling converges, and exporters continue to sell foreign exchange, it will help the exchange rate temporarily stabilize.

It is expected that the short-term trend of the New Taiwan dollar will still be dominated by shock consolidation. Whether it can continue to rebound depends on the trends of foreign capital and the trend of the US dollar.