TWD Briefly Breaks 32.5, Dramatically Rebounds to Close at 32.366

Amid a continuous decline in Taiwan's stock market, foreign investors leaned toward selling stocks and repatriating funds, putting sustained downward pressure on the New Taiwan dollar (TWD) against the US dollar. On the 29th, the exchange rate briefly depreciated over 10 cents, breaking the 32.5 threshold. However, the broader market narrowly held the 40,000-point level, and in the afternoon, the currency staged a dramatic reversal, closing at 32.366—a 1.8-cent gain. Total trading volume in the Taipei and Yuan Ta foreign exchange markets surged to $3.233 billion.

The TWD/USD opened at 32.41 today. During morning trading, strong dollar buying pushed the exchange rate to a low of 32.528, a sharp depreciation of 1.44 cents. However, the foreign exchange market shifted dramatically in the afternoon. Foreign investors turned to capital inflows, and with the central bank stepping in late to stabilize the exchange rate, the TWD rebounded to a high of 32.36, closing at 32.366—a 1.8-cent gain.

International oil prices continued to fall, and the US dollar index has declined for several consecutive days. According to central bank statistics, the dollar index fell 0.2% today. The Korean won strengthened by 0.71%, the Singapore dollar rose 0.09%, and both the TWD and Japanese yen gained 0.06%. The Chinese yuan edged up 0.01%.

Affected by the continued decline in US chip stocks, Taiwan's stock market briefly fell below the 40,000-point mark today. It closed down 1,564.18 points at 40,039.18, marking the seventh-largest point drop in Taiwan's stock market history. A total of 115 listed and OTC stocks hit the daily trading limit. ABF and memory-related stocks were hit hardest. TSMC closed down NT$80 at NT$2,200.

The US Federal Reserve (Fed) is scheduled to announce its decision at 2:00 PM Eastern Time on Wednesday (29th), which is 2:00 AM Thursday in Taiwan. A rate hold is widely expected. Although US June CPI rose at a slower 3.5% year-on-year, analysts anticipate inflation could rebound due to oil price volatility triggered by Trump's war with Iran. Recent Middle East clashes add further uncertainty.