New Taiwan Dollar Plummets 1.46 Cents to 32.178, Lowest Since May Last Year Amid Equal Tariff Measures

The New Taiwan Dollar (NTD) plunged again on Wednesday (9th), trading lower throughout the session and closing at 32.178, a depreciation of 1.46 cents. During the day, it briefly reached its lowest level since May last year. The trading volume at Taipei Foreign Exchange Brokers surged once more to USD 2.262 billion, reflecting strong capital outflows. Central Bank Governor Yang Jin-long stated that the bank continues to follow the 'Willow Tree Theory' and will moderately adjust the market when necessary.

The NTD opened at 32.04, down by 0.08 NT cents, and dipped as low as 32.212, resulting in a high-low spread of 1.72 cents.

Among major Asian currencies, the NTD depreciated by 0.46%, while the South Korean won also fell sharply by over 0.5%. The Singapore dollar and Chinese yuan appreciated by around 0.1%, and the Japanese yen and Thai baht rose approximately 0.15%. Meanwhile, the U.S. dollar index retreated about 0.1%, remaining in consolidation.

During his testimony at the Legislative Yuan, Governor Yang reiterated that the Central Bank's exchange rate policy continues to follow the 'Willow Tree Theory,' emphasizing that the bank's role is market adjustment, not control, and that operations remain highly transparent. Adjustments are made when necessary to prevent excessive volatility.

Governor Yang also pointed out that foreign capital flows are the primary driver of NTD fluctuations. Data shows foreign investors have recorded six consecutive days of net selling in the centralized market.