TWD Weakens Over 1.4 Jiao, Falls Below 32.4 Amid Intense Bull-Bear Battle in Taiwan Stock Market

The Taiwan Weighted Index saw significant intraday volatility today (20th), plunging over 700 points to fall below 42,000 before bulls regained control, leading to a seesaw movement around the flat line. However, from the Taipei foreign exchange market perspective, capital outflow pressure remains intense. The New Taiwan Dollar (TWD) hit a low of 32.432 against the US dollar within the first hour of trading, depreciating by 1.44 jiao.

After opening at 32.28 TWD (up 0.08 from yesterday), the currency quickly turned downward, breaking through key levels of 32.3 and 32.4, reaching a session low of 32.432. It subsequently oscillated around 32.41.

Among major Asian currencies, the TWD's depreciation of over 0.4% was the steepest. The Thai baht declined by about 0.15%, while the Singapore dollar and Japanese yen saw slight appreciation. The Chinese yuan rose over 0.05%, and the South Korean won surged more than 0.3%.

Uni Securities Investment Consulting analyzed that ongoing U.S.-Iran tensions continue to push oil prices higher. Additionally, China's 'Moonshot' unveiling of a large-parameter open-source AI model has triggered investor concerns over increased competition for OpenAI and Anthropic. Furthermore, deleveraging effects spreading from the Korean stock market to Taiwan, along with foreign investors' net short positions in futures reaching a record high of 86,000 contracts, are combining to create bearish sentiment and likely prolong index consolidation.