U.S.-Iran Deal Boosts Risk Appetite, New Taiwan Dollar Rises for Third Consecutive Day Amid Lower Trading Volume

(Central News Agency reporter Pan Tzu-yu, Taipei, 15th) The United States and Iran announced a consensus on a ceasefire framework, triggering a sharp rally in financial markets. Asian equities rose in tandem as capital flowed back into risk assets. Taiwan's stock market surged 1,227.95 points, while the New Taiwan Dollar (NTD) strengthened against the U.S. dollar for the third consecutive day, closing at 31.564, up 5.4 cents. Total trading volume in the Taipei and Yuan Ta foreign exchange markets reached $1.762 billion.

The preliminary agreement between the U.S. and Iran includes the reopening of the Strait of Hormuz. Upon the announcement, international oil prices dropped, risk aversion sentiment eased, and the U.S. dollar index weakened. Asian stock markets responded strongly, with Japanese and South Korean markets posting gains. Taiwan's stock market opened higher and continued to climb, closing at 45,396.99 points, up 1,227.95 points.

The New Taiwan Dollar extended its upward trend, opening at 31.55. Supported by the strong performance of the local stock market and foreign institutional buying, the NTD rose as high as 31.506 during the session, gaining over 10 cents. However, in the afternoon, increased dollar demand from importers and partial capital outflows by foreign investors narrowed the gains. The currency closed at 31.564, its lowest level of the day.

Foreign exchange traders noted that today's stock and currency movements clearly reflected the positive impact of the U.S.-Iran ceasefire framework. Foreign institutional buying in Taiwan equities drove the currency higher. However, with this week marking a 'Super Central Bank Week,' market sentiment remains cautious. Forex trading volume fell short of $2 billion, a sharp contrast to last week's levels exceeding $3 billion, highlighting foreign investors' conservative stance ahead of the U.S. Federal Reserve's interest rate decision meeting.

Traders added that the easing of geopolitical tensions has injected confidence into financial markets. However, the situation between the U.S. and Iran has been volatile since the conflict began, and risks have not fully dissipated. With U.S. inflation heating up, the signals from the Fed's upcoming meeting are expected to influence investor sentiment. While today's news boosted both stocks and currency, traders anticipate that the market will remain in a range-bound consolidation phase until the outlook becomes clearer. (Edited by Yang Lan-hsuan) 1150615