The US dollar surges against the Taiwan dollar then quickly reverses! Hot money flows into Taiwan stocks, driving the New Taiwan dollar to appreciate past the 31 mark

Market Turmoil: The Turning Point from Dollar Strength to Weakness

As the Federal Reserve signals a dovish stance, the trend of the US dollar against the Taiwan dollar shows a clear shift. The USD index, which had been stable at high levels, began to loosen after officials hinted at a rate cut, falling from its peak to around 100.16. This change breaks the long-standing strength of the dollar and creates a rebound space for the New Taiwan dollar.

How did the New Taiwan dollar rise? Two driving forces are indispensable

Market analysis indicates that the New Taiwan dollar against the US dollar surged to 31.405 today, driven by two simultaneous forces. First, Taiwan stocks, led by electronics blue chips, rose sharply, attracting continuous net foreign capital inflows; second, as the month-end approaches, exporters’ concentrated currency conversion needs emerged. The interaction of these two forces allowed the New Taiwan dollar to demonstrate a strong appreciation momentum early in the session, with an appreciation of 4.2 cents.

Why do regional currencies generally rebound, but the New Taiwan dollar’s gains are still limited?

When the US dollar against the Taiwan dollar eases, major Asian currencies like the yen and won also rise. However, market participants point out that although the dollar index has fallen back, it still remains above the 100 mark, indicating the global dollar trend remains strong. This background limits the appreciation potential of regional currencies. Currently, the New Taiwan dollar fluctuates around 31.415, and a significant breakthrough in the short term still depends on continued foreign capital inflows and further weakening signals of the US dollar.

Can the 31.4 level hold? Traders offer practical advice

The foreign exchange analysis team believes that if the Fed’s rate cut expectations continue to rise and Taiwan stocks remain hot, the New Taiwan dollar may approach 31.3. However, variables in the international currency market still exist; US economic data trends and China’s economic performance could influence the future trend of the New Taiwan dollar against the US dollar.

For practical operations, exporters are advised to sell on rallies near 31.4 to lock in gains; importers should patiently wait for a pullback in the exchange rate before entering the market. In any case, closely monitoring the USD/NTD movements and paying attention to Fed policy signals are essential tasks in the near future.