The New Taiwan dollar dropped to its lowest level in three years yesterday on concern declines in other Asian currencies may lure overseas buyers away from Taiwan.
The NT dollar closed at NT$34.545, compared with Friday's close of NT$34.473. Turnover was US$511 million.
"Trading was quite light in the morning. It was only in the afternoon that waves of selling emerged, with foreign stock funds heading out," a dealer at a local bank said.
Dealers said it appeared the central bank decided to let down its defenses at NT$34.500 amid the heavy selling interest.
"Offshore players and importers were also jumping on the bandwagon, making a defense at NT$34.500 somewhat useless," a dealer said, adding that it appears the central bank has set a new level of defense at NT$34.650.
Meanwhile, the stock market fell to its lowest level this year, led by Taiwan Semiconductor Manufacturing Co (台積電), following Wall Street's losses Friday.
"Semiconductor stocks became the primary targets for selling after their US counterparts led Wall Street's plunge [on Friday]," said James Su, analyst at Power World Securities Co Ltd (
Technology issues are likely to remain weak in the near term as a result of their lower-than-expected earnings in the first half of this year and a bleak outlook for the third quarter, Su said.
The TAIEX fell 49.71, or 1.1 percent, to 4,657.30, its fifth consecutive session of decline and the lowest since Dec. 27. Turnover came in at NT$32.7 billion.
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