Taiwanese Dollar Hits Lowest in Over 2 Months
The Taiwanese dollar depreciated past 32.3 per US dollar, its weakest level since early August as a sharp selloff in global semiconductor stocks weighed on regional currencies and dampened demand for technology-related assets. Taiwan’s stock market dropped more than 3%, its steepest decline since July, as concerns over elevated US interest rates, stretched valuations and the returns from massive artificial intelligence investments prompted foreign investors to pull funds from the region. Foreign investors sold a net NT$165.3 billion of Taiwanese equities on Tuesday, the third-largest daily outflow on record, with selling continuing for a sixth consecutive session on Wednesday. Hotter-than-expected US inflation data further fueled concerns over additional Federal Reserve rate hikes, adding to pressure on Asian currencies. However, falling US Treasury yields and oil prices offered some relief, while state-owned banks intervened to support liquidity in the local foreign exchange market.
3 per US dollar, its weakest level since early August as a sharp selloff in global semiconductor stocks weighed on regional currencies and dampened demand for technology-related assets. Taiwan’s stock market dropped more than 3%, its steepest decline since July, as concerns over elevated US interest rates, stretched valuations and the returns from massive artificial intelligence investments prompted foreign investors to pull funds from the region. 3 billion of Taiwanese equities on Tuesday, the third-largest daily outflow on record, with selling continuing for a sixth consecutive session on Wednesday.
Hotter-than-expected US inflation data further fueled concerns over additional Federal Reserve rate hikes, adding to pressure on Asian currencies. However, falling US Treasury yields and oil prices offered some relief, while state-owned banks intervened to support liquidity in the local foreign exchange market.