Foreign Capital Outflow Leads to Double Drop in Stocks and Currency; TWD Depreciates by 5.1 Cents
Taiwan's stock market struggled at the 40,000-point mark while the New Taiwan Dollar depreciated as foreign investors withdrew capital amid global uncertainty.
📋 Article Processing Timeline
- 📰 Published: April 28, 2026 at 19:18
- 🔍 Collected: April 28, 2026 at 19:32 (13 min after Published)
- 🤖 AI Analyzed: April 28, 2026 at 20:06 (34 min after Collected)
The Taiwan Stock Exchange (Taiex) again saw a battle for the 40,000-point mark today, ultimately closing in the red. Influenced by foreign capital outflows and a strengthening US dollar, the New Taiwan Dollar (TWD) simultaneously depreciated. During the session, it plunged by more than 0.1, hitting a low of 31.586. The depreciation narrowed in the afternoon, closing at 31.518, down 5.1 cents, ending a two-day winning streak. The total turnover in the Taipei and Cosmos foreign exchange markets was $2.6395 billion.
With US-Iran peace negotiations stalled, the market remained on the sidelines. Major US indices showed mixed results. The Taiex reached 40,101.23 points early in the session but faced profit-taking sell-offs at its peak, losing the 40,000-point mark and closing at 39,521.73 points, down 94.9 points.
The three major institutional categories of investors sold a combined net of 34.102 billion TWD, with foreign investors withdrawing 39.298 billion TWD, marking a second consecutive day of selling. The cumulative sell-off over two days reached 90.494 billion TWD.
The TWD opened at 31.49 against the USD. As foreign capital exited and the USD rebounded, the rate quickly breached the 31.5 mark in the morning, hitting a session low of 31.586. Selling by exporters in the afternoon helped to narrow the losses.
Foreign exchange traders stated that heavy selling in the stock market led to strong foreign capital outflows, driving the TWD down. Monthly demand from exporters for settlement surfaced when the rate hit 31.55, bringing the price into a fluctuation range around 31.5.
Traders pointed out that the TWD's movement remains highly correlated with the stock market and foreign capital trends. Especially after the Taiex touched 40,000 points, foreign investors have leaned toward profit-taking. Additionally, the impasse in the Middle East, rising oil prices, and inflation uncertainty have turned the market mood cautious. The TWD is expected to fluctuate between 31.4 and 31.6 in the short term.
According to Central Bank statistics, the US Dollar Index rose by 0.34% today. Most major Asian currencies were under pressure: the Korean Won and Singapore Dollar both fell 0.2%, the Japanese Yen dropped 0.19%, the Chinese Renminbi fell 0.18%, and the New Taiwan Dollar fell 0.16%.
With US-Iran peace negotiations stalled, the market remained on the sidelines. Major US indices showed mixed results. The Taiex reached 40,101.23 points early in the session but faced profit-taking sell-offs at its peak, losing the 40,000-point mark and closing at 39,521.73 points, down 94.9 points.
The three major institutional categories of investors sold a combined net of 34.102 billion TWD, with foreign investors withdrawing 39.298 billion TWD, marking a second consecutive day of selling. The cumulative sell-off over two days reached 90.494 billion TWD.
The TWD opened at 31.49 against the USD. As foreign capital exited and the USD rebounded, the rate quickly breached the 31.5 mark in the morning, hitting a session low of 31.586. Selling by exporters in the afternoon helped to narrow the losses.
Foreign exchange traders stated that heavy selling in the stock market led to strong foreign capital outflows, driving the TWD down. Monthly demand from exporters for settlement surfaced when the rate hit 31.55, bringing the price into a fluctuation range around 31.5.
Traders pointed out that the TWD's movement remains highly correlated with the stock market and foreign capital trends. Especially after the Taiex touched 40,000 points, foreign investors have leaned toward profit-taking. Additionally, the impasse in the Middle East, rising oil prices, and inflation uncertainty have turned the market mood cautious. The TWD is expected to fluctuate between 31.4 and 31.6 in the short term.
According to Central Bank statistics, the US Dollar Index rose by 0.34% today. Most major Asian currencies were under pressure: the Korean Won and Singapore Dollar both fell 0.2%, the Japanese Yen dropped 0.19%, the Chinese Renminbi fell 0.18%, and the New Taiwan Dollar fell 0.16%.