Reported 9 months ago
The New Taiwan Dollar exchange rate closed at 32.45 on June 28, up by 8 cents, marking a two-day consecutive increase. Despite the slight weakness in major Asian currencies due to hawkish comments from US Federal Reserve officials and a strengthening US dollar index reaching 106, Taiwan's stock market remained in the green, leading to a rise in the New Taiwan Dollar exchange rate. With foreign capital inflow and export companies selling foreign exchange by the end of the month, the exchange rate, though starting the day with a minor depreciation, turned positive mid-day, hitting the 32.4 mark and closing at 32.45, inching up for two consecutive days. The current week saw a depreciation trend breaking through the 32.4 and 32.5 marks, hitting a low of 32.554 on Wednesday, reflecting the ongoing need for exporters to sell foreign exchange by the end of the month and quarter. Analysts point to cautious Federal Reserve talks, escalating market risk aversion due to the start of the US presidential debate, and a temporary rise in the US dollar index impacting Asian currencies negatively, with the New Taiwan Dollar showing relative resilience. The exchange rate opened on a decline but rose due to steady foreign capital inflow and increased FX sales by exporters, holding around 32.4. With the Fed releasing key data and minutes in July and the upcoming summer holiday season, the New Taiwan Dollar is expected to trend slightly upward in July, although short-term attention is needed to ensure it does not fall below 32.60. According to Central Bank statistics, the US dollar index rose by 0.02%, the Euro rose by 0.07%, and Asian currencies showed strength with the South Korean won rising by 0.66%, the New Taiwan Dollar by 0.25%, and the Chinese Yuan by 0.04%, with only the Japanese Yen depreciating by 0.24%.
Source: YAHOO