Stock and Exchange Rates Decouples! Two Forces Struggle to Counterbalance New Taiwan Dollar Slightly Depreciates to 32.632

Reported 12 months ago

On July 3, 2024, the exchange rate of the New Taiwan Dollar (NTD) saw fluctuations as foreign capital outflows and central bank interventions prevented depreciation, with a minimal decrease of 0.5 NT and closing at 32.632. The market was influenced by the Federal Reserve Chairman Powell's dovish comments on inflation progress and optimistic views on interest rate cuts, boosting market confidence with rising U.S. and Taiwanese stocks. Despite the weakening U.S. dollar, the NTD continued to fall due to strong foreign capital outflows, but the central bank's intervention curbed the decline by the end of the day. The exchange rate struggle is expected to persist between 32.5 to 32.7 NTD in the short term.

Source: YAHOO

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