New Taiwan Dollar Depreciation Pressure Eases Significantly, Closes at 32.266, Up 1.09 Cents

The New Taiwan Dollar (NTD) experienced significantly eased depreciation pressure today, maintaining an appreciating trend for nearly the entire session. It closed at 32.266, up 1.09 cents, with trading volume at Taipei Foreign Exchange Brokers reaching USD 1.947 billion, falling within the recent normal trading range.

The NTD opened at 32.34, up 3.5 cents, dipped briefly to 32.38, but then moved into a full appreciation trajectory, reaching a high of 32.23. The intraday high-low spread was 1.5 cents.

Among major Asian currencies, movements were mixed. The Korean won strengthened over 0.45%, the New Taiwan Dollar rose 0.34%, while the Chinese yuan and Singapore dollar edged up slightly. The U.S. dollar index declined by approximately 0.05%, while the Japanese yen depreciated by around 0.15% and the Thai baht by nearly 0.1%.

Yuanta Investment Consulting noted that Taiwan's Ministry of Economic Affairs reported June export orders reaching a record high of USD 95.26 billion. It forecasts that export orders will remain stably above USD 90 billion per month in the second half of the year. Based on corporate earnings, capital expenditures, and export momentum, Taiwan's economy remains in an expansion phase.

However, Yuanta cautioned that excessive capital concentration brings cycles of valuation adjustments and deleveraging, which recently caused the Taiwan stock index to record both its largest single-day drop and rise within just three days, leading to frequent and sharp market volatility.