TWD Stock and Forex Fall! Breached 32.3 Temporarily, Ends at 32.288 After Ending Two-Day Gain

Rising U.S.-Iran tensions caused Taiwan's stock and foreign exchange markets to weaken simultaneously today (7th). The New Taiwan Dollar (NTD) against the U.S. dollar briefly depreciated past the 32.3 threshold. However, continuous intervention by the central bank in the late session narrowed the day's losses. The NTD closed at 32.288, down 2.7 cents, halting a two-day winning streak. Total trading volume in the Taipei and Yuanta foreign exchange markets amounted to $2.9345 billion.

The opening rate for the NTD against the USD was 32.24. It initially rose to a high of 32.20, but as dollar buying surged, the exchange rate turned bearish, plunging to a low of 32.35. Nevertheless, exporters opportunistically entered the market to sell foreign currency, and the central bank also intervened, helping narrow the depreciation. The final closing rate was 32.288.

Examining major currencies' performance against the USD today, according to central bank statistics: the U.S. Dollar Index rose 0.20%. The South Korean Won strengthened by 0.66%, making it the strongest Asian currency today. The Chinese Yuan appreciated by 0.07%, the Singapore Dollar slightly by 0.02%, the New Taiwan Dollar depreciated by 0.08%, and the Japanese Yen sharply declined by 0.34%, showing divergent movements among Asian currencies.

The Taiwan stock market surged over 430 points earlier today, but profit-taking triggered a reversal, ending down 170.79 points at 44,225.91. Foreign investors sold NT$40.7 billion worth of Taiwanese stocks.

Due to market anxiety over monetary policy outlook, the U.S. dollar found support on Thursday. Investors sold U.S. Treasuries, pushing up bond yields. Market attention has now shifted to Friday's release of the July Non-Farm Payroll report, which will be a key indicator for the Federal Reserve's interest rate direction.