The rise of the New Taiwan dollar against the U.S. dollar was hindered, falling below the 31.8 yuan level for the second consecutive day. The decline was restrained in late trading after the central bank adjusted it, and finally closed at 31.795 yuan, down 1.4 cents. The exchange rate ended its fifth consecutive red streak.
(Photo by reporter Chen Meiying)
[Reporter Chen Meiying/Report from Taipei] The Taiwan stock market turned volatile before the 50,000-point mark. Foreign capital overselling expanded, hot money turned to remittances, and the U.S. dollar maintained a high level. The rise of the New Taiwan dollar against the U.S. dollar was hindered, falling below the intraday level for the second consecutive day. The price reached the 31.8 yuan mark. The decline was restrained in late trading after adjustment by the central bank, and ended at 31.795 yuan, down 1.4 cents. The exchange rate ended five consecutive reds, and the trading volume was only 1.9915 billion U.S. dollars. The wait-and-see atmosphere in the market became stronger.
Taiwan stocks fell 16.18 points today to close at 49806.37 points. The three major legal entities oversold simultaneously, with a total overselling of 21.257 billion yuan, of which foreign investors oversold expanded to 13.044 billion yuan.
After foreign capital oversold, funds were repatriated, and the Taiwan dollar's decline intensified in the afternoon, hitting a low of 31.821 yuan. However, under the two-way adjustment of the central bank in late trading, the exchange rate held at 31.7 yuan.
Market focus turns to the minutes of the Federal Reserve meeting released tonight. After the U.S. released weaker-than-expected labor data last week, the market sharply revised down its expectations for an interest rate hike in October. The chance of a rate hike is currently down to about 20%, but the chance of a December rate hike is still as high as 80%. If the minutes of the meeting release a hawkish signal, the US dollar is expected to continue to strengthen and Asian currencies will remain under pressure.
Huiyin people pointed out that in addition to the US dollar remaining at a high level and exporters reluctant to sell US dollars, the biggest factor affecting the recent trend of the New Taiwan dollar is still the movement of foreign capital. Taiwan stocks are approaching 50,000 points, and the 9th coincides with the National Day compensatory holiday. Some foreign investors took profits first, and capital remittances also caused the New Taiwan dollar to fluctuate around 31.8 yuan.
However, the market for AI technology stocks is still hot. At this stage, it is difficult to conclude that foreign hot money has turned, and it is still necessary to observe the capital trends in the future. Huiyin people believe that the slowdown in the short-term momentum of foreign capital inflows will constrain the rise of the New Taiwan dollar, and the exchange rate is expected to remain in the range of 31.5 yuan to 32 yuan for the time being.
According to statistics from the central bank, as of 4 p.m., the U.S. dollar index rose 0.19%, the Japanese yen rose 0.01%, the Korean won rose 0.11%, the New Taiwan dollar fell 0.04%, the Singapore dollar fell 0.07%, and the major Asian currencies were mixed.
