TWD Exporters and Central Bank Step In: Trading Volume Shrinks, Depreciation Narrows as Currency Barely Holds 32.5 Level

On Thursday (April 4), the Taiwan stock market ended slightly lower, while the New Taiwan Dollar (TWD) once again approached the critical 32.5 per USD threshold. However, thanks to continued central bank intervention to stabilize the exchange rate and increased dollar selling by exporters, the TWD recovered near the flat line and ultimately closed at 32.447, a slight depreciation of 0.9 cents—its second consecutive day of decline. Total trading volume in the Taipei and Yuan Ta foreign exchange markets shrank to $2.47 billion.

The TWD opened at 32.447 against the US dollar. In the afternoon, as foreign investors expanded their outbound remittances, the exchange rate briefly dipped to 32.495, coming within a hair’s breadth of breaking the 32.5 level. As the exchange rate reached relatively low levels, exporters immediately entered the market with expanded dollar sales, narrowing the TWD's depreciation. Coupled with timely adjustments by the central bank toward the close, the currency nearly erased all afternoon losses, ending the session at 32.447.

Looking at major currencies' performance against the US dollar today, according to central bank data, the US Dollar Index rose 0.19%. After yesterday’s sharp rally, the Japanese yen fell 0.65% today, the Korean won depreciated 0.33%, and the Singapore dollar declined 0.12%. The TWD saw a slight depreciation of 0.03%, while the Chinese yuan appreciated marginally by 0.03%. Overall, most major Asian currencies trended weaker against the dollar.

Although US stocks surged strongly yesterday, Taiwan’s stock market dropped nearly 500 points at the opening today, led by declines in TSMC. Large-cap electronics stocks showed mixed results, but sectors such as silicon photonics, PCBs, and memory attracted investor funds. As a result, the broader market’s losses narrowed, and the index closed at 43,360.66, down 25.75 points.