Preface

On October 26, the Taipei stock and forex markets closed in unison amid foreign capital outflow pressures. The New Taiwan Dollar (NTD) weakened against the US dollar, recording a value of 33.097, depreciating by 0.12, marking the third consecutive depreciation and hitting a two-month low. The forex market witnessed light trading activity, with the combined volume of Taipei and the over-the-counter forex market shrinking to $1.2255 billion USD.

Lazy bag

The New Taiwan Dollar hit a new low, depreciating against the US dollar at 33.097 with light market activity. Exporter demand could potentially bolster the Taiwanese currency, but vigilance regarding foreign capital outflows remains essential.

Main Body

The New Taiwan Dollar's performance on October 26 reflects a continued weakening trend influenced by foreign capital outflows. Opening at 33.06, the currency fluctuated between 33.06 and 33.104 before settling at 33.097. This drop represents the third successive depreciation and a two-month low, highlighting ongoing vulnerabilities.

Concurrently, the Taipei stock market experienced significant volatility, with TSMC (2330-TW) dragging the market lower in late trades. The stock market ended 12.9 points lower at 22,260.29, losing its annual line with a turnover reduced to NT$215 billion. In contrast, the over-the-counter index recorded a slight increase, closing 0.57 points higher at 252.11.

Market analysts highlighted that exporters are likely to engage in currency exchange activities at the end of the month and quarter, which might provide temporary strength for the NTD. However, there is still a risk of breaching the 33.1 barrier if foreign selling persists.

In the broader Asian currency landscape, according to Central Bank statistics, other major currencies like the Korean Won, Japanese Yen, Singapore Dollar, and Chinese Yuan saw marginal gains of 0.39%, 0.23%, 0.15%, and 0.01%, respectively. The New Taiwan Dollar's slight depreciation of 0.04% contrasts with these trends, alongside a 0.12% decline in the US Dollar index.

Key Insights Table