The New Taiwan dollar rose 0.6 percent against its US counterpart yesterday to hit a four-year high, boosted by consistent foreign inflows to Taiwan's stocks, coupled with strengthening Asian currencies, traders said.
On the Taipei foreign exchange market, the NT dollar rose by NT$0.184 to close at NT$31.332, a level not seen since October 2000, with turnover expanding to US$1.34 billion.
The Korean won jumped 1.64 percent to mark a seven-year high against the US dollar yesterday.
"The faster-than-expected appreciation is mostly due to overseas fund managers' increasing their holdings in Asian stocks, especially Taiwanese and South Korean equities," a Taipei-based trader said on condition of anonymity.
Foreign investors bought a total of NT$3.02 billion worth of Taiwanese stocks yesterday. They have purchased a total of NT$92.09 billion since the beginning of this year, according to the Taiwan Stock Exchange.
The anonymous trader also attributed the weakness of the US dollar to a renewed concern that central banks were diversifying the allocation of their foreign-exchange reserves due to the greenback's declining value.
The NT dollar is expected to move in tandem with other Asian currencies in the near term, traders said.
"Demand for the local currency will increase, as there is no sign indicating an end to foreign investors' appetite for Taiwanese equities," a trader said.
The continued buying may further drive the NT dollar to challenge the NT$31.25 mark against the US dollar, which it has not surpassed since April 2000, the trader said.
A panic sell-off of US currency from Taiwanese importers and exporters to hedge against currency loss may occur, and would further support the strengthening trend of the NT dollar, the trader added.
Also see story:
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source