Reported 9 months ago
The US Federal Reserve (Fed) has recently taken a hawkish stance, surprising the market with the US dollar index breaking 106 in early New York trading on June 26. This led to a widespread decline in major Asian currencies. While the Taiwan stock market surged over 100 points on the 26th, the New Taiwan Dollar depreciated significantly by 1.11 cents to close at 32.554, the lowest in nearly two months. Japanese yen also fell below the 160 level to a 38-year low, prompting speculation about Tokyo's intervention. Several Fed officials have made hawkish comments recently, with Michelle Bowman suggesting further rate hikes if inflation remains high. The Dollar Index climbed to 106.13, the highest since late April, causing non-US currencies to devalue. The South Korean won and Chinese yuan also depreciated, with the yuan hitting a seven-month low. The Japanese yen dropped to its weakest level in 35 years, leading to concerns about Tokyo's potential intervention. Taiwan's stock market rose significantly but the New Taiwan Dollar depreciated, breaking the 32.5 level. The influx of foreign funds led to substantial trading volumes in the currency market. Looking ahead, uncertainty remains regarding the Fed's interest rate cuts, influencing domestic and international markets, with the New Taiwan Dollar expected to fluctuate in the range of 32.2 to 32.8 in the short term.
Source: YAHOO