Stock and Forex Decouple: NTD Depreciates 5.1 Cents, Ending 2-Day Winning Streak
Geopolitical tensions in the Middle East have driven safe-haven funds back to the US dollar, causing Asian currencies to weaken. The New Taiwan Dollar (NTD) closed at 31.54 against the USD, down 5.1 cents, ending a two-day rise despite gains in the Taiwan stock market.
📋 Article Processing Timeline
- 📰 Published: April 22, 2026 at 19:26
- 🔍 Collected: April 22, 2026 at 20:01 (35 min after Published)
- 🤖 AI Analyzed: April 22, 2026 at 22:21 (2h 19m after Collected)
TAIPEI, April 22 (CNA) — Geopolitical uncertainties surrounding the U.S. and Iran have triggered a flight to safety, boosting the U.S. dollar and weighing on Asian currencies. The New Taiwan Dollar closed at 31.54 against the greenback today, down 5.1 cents, terminating its two-day appreciation trend. Total trading volume at the Taipei and Cosmos Foreign Exchange Markets narrowed to US$1.6685 billion.
While President Trump announced an extension of the ceasefire with Iran to allow more time for negotiations, he emphasized the continued blockade of Iranian ports, leaving the situation in the Middle East highly volatile.
Despite the chaos abroad, Taiwan's stock market remained resilient. The Taiex surpassed the 38,000-point milestone during the day, reaching a high of 38,096.88 before closing at 37,878.47, up 273.36 points.
Forex traders noted that while stocks rose, foreign capital inflows were limited and characterized by two-way operations. As the USD strengthened, the NTD weakened in tandem with other Asian peers, resulting in a decoupling of stock and currency trends. The NTD opened at 31.51 and fluctuated between a high of 31.455 and a low of 31.540.
Traders added that the NTD has been on an upward trend since April, reaching the psychological level of 31.5. Below this mark, dollar buying interest is strong. Further appreciation would require powerful momentum, which is challenged by the already high stock levels and lingering war clouds in the Middle East. The NTD is expected to enter a consolidation phase in the short term.
Central Bank statistics showed that the USD index rose 0.05% today. Major Asian currencies mostly weakened: the Renminbi fell 0.07%, the Japanese Yen dropped 0.13%, the NTD depreciated 0.16%, and the Korean Won fell 0.36%.
While President Trump announced an extension of the ceasefire with Iran to allow more time for negotiations, he emphasized the continued blockade of Iranian ports, leaving the situation in the Middle East highly volatile.
Despite the chaos abroad, Taiwan's stock market remained resilient. The Taiex surpassed the 38,000-point milestone during the day, reaching a high of 38,096.88 before closing at 37,878.47, up 273.36 points.
Forex traders noted that while stocks rose, foreign capital inflows were limited and characterized by two-way operations. As the USD strengthened, the NTD weakened in tandem with other Asian peers, resulting in a decoupling of stock and currency trends. The NTD opened at 31.51 and fluctuated between a high of 31.455 and a low of 31.540.
Traders added that the NTD has been on an upward trend since April, reaching the psychological level of 31.5. Below this mark, dollar buying interest is strong. Further appreciation would require powerful momentum, which is challenged by the already high stock levels and lingering war clouds in the Middle East. The NTD is expected to enter a consolidation phase in the short term.
Central Bank statistics showed that the USD index rose 0.05% today. Major Asian currencies mostly weakened: the Renminbi fell 0.07%, the Japanese Yen dropped 0.13%, the NTD depreciated 0.16%, and the Korean Won fell 0.36%.