Foreign investment will be cut by another 90 billion! Taiwan stocks surged nearly 2,000 points, while the New Taiwan dollar dropped 1.14 cents

Taiwan stocks surged 1,960.06 points today, returning to 41,000 points, but foreign investors continued to sell more than 90.056 billion yuan. Under the pressure of foreign capital remittances, the exchange rate of the New Taiwan dollar against the U.S. dollar hit an intraday low of 32.957 yuan, depreciating 1.89 cents, approaching the 33 yuan mark again. In late trading, the decline was restrained under the adjustment of the central bank, and finally closed at 32.882 yuan, a depreciation of 1.14 cents. The total transaction volume of the Taipei and Yuantai foreign exchange markets expanded to 4.5 billion US dollars, the seventh largest amount in history.

U.S. chip stocks rebounded last Friday, coupled with the National Security Fund's launch of market stabilization and the implementation of short-term restrictions by the Financial Supervisory Board, Taiwan stocks jumped short and opened higher. In early trading, the foreign exchange market was still digesting the demand for remittances after foreign investors sold stocks last week. Shortly after the New Taiwan dollar opened at 32.8 yuan, it fell to 32.937 yuan.

Huiyin people pointed out that the New Taiwan dollar is still weak in the short term, and 33 yuan is the focus of observation this week. Whether the rebound in the Taiwanese stock market can drive overselling by foreign capital and the convergence of remittance outflows, and whether exporters increase their selling of foreign exchange when the exchange rate approaches 33 yuan, will determine whether the New Taiwan Dollar can stabilize.

According to statistics from the central bank, as of 4 p.m., the U.S. dollar index rose slightly by 0.08%, and the trends of major Asian currencies remained divergent. Among them, the Taiwan dollar depreciated 0.35%, the weakest; the yuan depreciated 0.05%, the Japanese yen depreciated 0.01%, but the Singapore dollar appreciated 0.06%, and the Korean won surged 0.43%.

The U.S. non-farm payrolls data released last week was better than expected, raising market expectations for the Federal Reserve to raise interest rates in December. This week, market focus turns to the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) in October, as well as Federal Reserve Governor Waller's economic outlook speech. If inflation is higher than expected and further increases expectations for interest rate hikes, a stronger U.S. dollar may put the New Taiwan dollar under pressure again.

In addition, Huida's board of directors will launch an investigation into Huang Renxun becoming a target of Chinese espionage, which is also the focus of attention from all walks of life. The board of directors stated that there is currently no reason to believe that U.S. national security or Huida’s secrets have been compromised, and the subsequent market reaction remains to be seen.