Hot Money Pours In, Stocks and Forex Surge; New Taiwan Dollar Closes at 31.69, a More Than 1-Month High

(Central News Agency, Taipei, 14th, reporter Pan Tzu-yu) With the United States and Iran intending to brew a new round of negotiations, risk-averse sentiment has cooled, and hot money has flowed back in large quantities, stimulating a rise in both stocks and foreign exchange. The Taiwan stock market closed at a new high, and the New Taiwan Dollar against the US dollar rose sharply by more than 1 cent during the session, closing at 31.69 yuan, up 9.5 cents, a new high in more than a month. The total transaction volume in the Taipei and Yuanta foreign exchange markets was US$2.002 billion.

US President Donald Trump claimed earlier that Iran had taken the initiative to contact him in the hope of reaching an agreement; foreign media reports pointed out that the United States and Iran are considering launching a new round of face-to-face negotiations on April 16.

The prospect of a renewed dialogue between the US and Iran has boosted risk appetite, with major US indices closing higher and the US dollar index falling. The Taiwan stock market opened higher and moved higher today. The weighted index reached a high of 36341.44 points during the session, a record high. The gains narrowed at the end of the session, closing at 36296.12 points, an increase of 838.83 points, also a new closing high.

Foreign investors bought a whopping 68.908 billion yuan today, the fifth largest single-day net buy in foreign investor history.

The New Taiwan Dollar opened at 31.73 yuan against the US dollar today, and then, with the help of three major positive factors: a weakening US dollar, a strong rise in Taiwan stocks, and an influx of hot money, it began a strong upward trend, breaking through 31.7 yuan and reaching a high of 31.65 yuan. However, US dollar buying quickly emerged, suppressing the rise, and it closed at 31.69 yuan.

A foreign exchange trader said bluntly that the negative impact of the Middle East war has been blunted, and the impact on the stock and foreign exchange markets is not as severe as it was at the beginning, but the impact on energy and inflation continues to ferment, which may affect the Federal Reserve's subsequent monetary policy; therefore, if there are signs that the war is ending, it can still boost market sentiment. Today's stock and foreign exchange markets were clearly stimulated by the news that the US and Iran are brewing a new round of negotiations, and they rose simultaneously.

The foreign exchange trader further pointed out that since the outbreak of the war in the Middle East, large amounts of foreign capital have flowed in and out, becoming the main force driving the direction of the foreign exchange market. However, the news changes from day to day, and unless the situation is truly clear, it will be difficult to escape the range-bound pattern in the short term.

According to the central bank's statistics on the changes of major currencies against the US dollar today, as risk-averse sentiment cooled, the US dollar index fell by 0.7%, and Asian currencies fought back across the board. The renminbi appreciated by 0.25%, the New Taiwan Dollar rose by 0.3%, the Japanese yen rose sharply by 0.33%, and the South Korean won jumped by 0.77%. (Editor: Lin Shu-yuan) 1150414

Choosing to stand with the facts, every sponsorship from you is a force to protect the freedom of the press.

Download the Central News Agency's "First-hand News" APP to get the latest news in real time.

The text, pictures, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.