The US dollar yesterday rose against the New Taiwan dollar, gaining NT$0.017 to close at NT$30.010 in the wake of a plunge on the local equity market caused by a sell-off by foreign institutional investors, dealers said.
The gains posted by the US dollar against the NT dollar also reflected weakness in other regional currencies, which helped the greenback return to the NT$30 mark by the end of the session, the dealers said.
The US dollar opened at the day’s high of NT$30.050 and moved to a low of NT$29.990 before rebounding.
Turnover totaled US$469 million during the trading session.
Soon after Taiwan’s foreign exchange markets opened, the US dollar staged a rebound from a slump seen a session earlier and its strength continued as traders took their cues from a falling local equity market, they said.
The selling in local equities focused on large-cap electronics stocks, in particular Apple Inc concept stocks, amid worries over iPhone X shipments, they said.
Foreign institutional investors sold a net NT$11.1 billion (US$370 million) of shares on the main board, sending the weighted index down 1.64 percent at yesterday’s close, Taiwan Stock Exchange data showed.
Despite the heavy selling by foreign institutional investors, the NT dollar did not plunge along with local shares, which led dealers to think foreign institutional investors were keeping most of their funds in Taiwan instead of moving them out of the nation.
The NT dollar was also affected by losses suffered by other regional currencies, including the won, which the NT dollar closely follows, dealers said.
The won fell about 0.8 percent against the US dollar after high-tech stocks in Seoul were badly hit.
The US dollar is expected to stay firmer ahead of a US Federal Reserve policymaking meeting scheduled for next week, as a US interest rate increase is widely anticipated, dealers said.
AI REVOLUTION: The event is to take place from Wednesday to Friday at the Taipei Nangang Exhibition Center’s halls 1 and 2 and would feature more than 1,100 exhibitors Semicon Taiwan, an annual international semiconductor exhibition, would bring leaders from the world’s top technology firms to Taipei this year, the event organizer said. The CEO Summit is to feature nine global leaders from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), ASE Technology Holding Co (ASE, 日月光投控), Applied Materials Inc, Google, Samsung Electronics Co, SK Hynix Inc, Microsoft Corp, Interuniversity Microelectronic Centre and Marvell Technology Group Ltd, SEMI said in a news release last week. The top executives would delve into how semiconductors are positioned as the driving force behind global technological innovation amid the artificial intelligence (AI) revolution, the organizer said. Among them,
Demand for artificial intelligence (AI) chips should spur growth for the semiconductor industry over the next few years, the CEO of a major supplier to Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said, dismissing concerns that investors had misjudged the pace and extent of spending on AI. While the global chip market has grown about 8 percent annually over the past 20 years, AI semiconductors should grow at a much higher rate going forward, Scientech Corp (辛耘) chief executive officer Hsu Ming-chi (許明琪) told Bloomberg Television. “This booming of the AI industry has just begun,” Hsu said. “For the most prominent
Former Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) chairman Mark Liu (劉德音) yesterday warned against the tendency to label stakeholders as either “pro-China” or “pro-US,” calling such rigid thinking a “trap” that could impede policy discussions. Liu, an adviser to the Cabinet’s Economic Development Committee, made the comments in his keynote speech at the committee’s first advisers’ meeting. Speaking in front of Premier Cho Jung-tai (卓榮泰), National Development Council (NDC) Minister Paul Liu (劉鏡清) and other officials, Liu urged the public to be wary of falling into the “trap” of categorizing people involved in discussions into either the “pro-China” or “pro-US” camp. Liu,
Minister of Economic Affairs J.W. Kuo (郭智輝) yesterday said Taiwan’s government plans to set up a business service company in Kyushu, Japan, to help Taiwanese companies operating there. “The company will follow the one-stop service model similar to the science parks we have in Taiwan,” Kuo said. “As each prefecture is providing different conditions, we will establish a new company providing services and helping Taiwanese companies swiftly settle in Japan.” Kuo did not specify the exact location of the planned company but said it would not be in Kumamoto, the Kyushu prefecture in which Taiwan Semiconductor Manufacturing Company (TSMC, 台積電) has a
RSS