TWD Holds Above 32, Closes at 31.925 Amid Volatile Trading, Up 1.2 Cents

On August 20, the New Taiwan dollar (TWD) opened at 31.89, up 4.7 cents, and reached a high of 31.84 during morning trading. However, it turned negative after midday, dipping as low as 31.997, before closing at 31.925—up 1.2 cents from the previous day. The trading volume at Taipei Forex Brokers declined slightly to USD 1.752 billion.

Among major Asian currencies, the South Korean won depreciated over 0.4%, while the Japanese yen fell nearly 0.2%. The Singapore dollar remained flat, whereas the TWD closed up 0.04%. The Thai baht and Chinese yuan both appreciated more than 0.1%. Meanwhile, the U.S. Dollar Index dropped over 0.1%.

Uni Securities Investment Trust analyzed that proactive actions by the U.S. Treasury Department sent a clear signal to stabilize markets, effectively preventing systemic risks stemming from surging bond yields impacting asset valuations.

Capital Securities Investment Trust noted that the U.S. Treasury’s unexpected move to raise the cap on long-term repo operations would inject liquidity into the market in the short term. However, they cautioned that the minutes from the Federal Reserve’s July meeting revealed a hawkish tone, with most officials advocating for potential rate hikes if inflation does not cool down. Currently, the market assigns a 67.3% probability that the FOMC will hold rates steady at its September 16 meeting.