Stocks and Currency Decouple: NT Dollar Falls to 31.445 Amid Foreign Capital Outflow

Central News Agency, Taipei, June 2. Market reports of Iran suspending negotiations with the US boosted the US dollar index, prompting foreign investors to pull capital out of Taiwan. The NT dollar fell, breaking the 31.5 mark during the session and closing at 31.445, down 0.066, ending a two-day winning streak. Total turnover in the Taipei and Yuanta foreign exchange markets reached a massive $3.5565 billion. While the four major US stock indices hit record highs and NVIDIA CEO Jensen Huang's keynote speech provided a boost, the Taiwan stock market continued to climb, closing at a record 45,557.31 points despite profit-taking. The NT dollar, however, moved in the opposite direction. After opening at 31.36, it weakened rapidly, breaking through 31.4 and 31.5. Traders noted that foreign investors were shifting to a more conservative strategy due to the uncertain Middle East situation. While the market has become somewhat desensitized to the conflict, geopolitical risks continue to influence risk appetite. Traders expect the NT dollar to fluctuate between 31.300 and 31.600 in the short term as the market waits for further developments.