Reported 11 months ago
On June 21, 2024, the US dollar index rose, causing major Asian currencies to weaken. The Japanese Yen dropped below 159 against the US dollar, a first since the end of April, despite attempts by Japanese officials to verbally intervene but failing to boost the Yen. In Taipei's financial market, both stocks and exchange rates retreated on the 21st, with the Taiwan Stock Exchange closing down over 150 points, and the New Taiwan Dollar weakening against the US dollar, hitting close to 32.4 and closing at 32.369, down by 4.1 points. The New Taiwan Dollar has been fluctuating around 32.35 in the past week, affected by the conflicting interests of buyers and sellers, along with dual-directional operations by foreign capital. While the stock market has been setting new highs recently, it remains a crucial force supporting the New Taiwan Dollar, enabling it to decouple from other Asian currencies and maintain a relatively strong performance. The yen's depreciation was expected to suppress the New Taiwan Dollar's performance, but it remained resilient, indicating positive prospects for domestic industries, strong linkage between Taiwan stocks and the US, and the stock market's influence on the foreign exchange market. The focus in the upcoming week will still be on the stock market's themes, with anticipation on whether the US market can drive Taiwan stocks further. If it can attract foreign capital inflows, the New Taiwan Dollar may gradually rise, and the timing near the end of the month may see export firms strengthening their foreign exchange selling pressure, providing support for the New Taiwan Dollar as it approaches testing the 32.25 mark.
Source: YAHOO