Hot Money Inflows Drive Stock and Currency Gains; New Taiwan Dollar Closes at NT1.409, a Two-Month High
Driven by expectations of an end to the Middle East conflict and a surge in hot money, Taiwan''s stock market hit a new record high of 42,156.06 points, and the New Taiwan Dollar reached a two-month high of NT1.409 against the US dollar. Foreign capital inflows are significantly boosting both the stock and currency markets.
📋 Article Processing Timeline
- 📰 Published: May 7, 2026 at 19:28
- 🔍 Collected: May 7, 2026 at 20:02 (34 min after Published)
- 🤖 AI Analyzed: May 8, 2026 at 05:04 (9h 2m after Collected)
Central News Agency (Taipei, May 7th) - With market expectations that the Middle East conflict is nearing its end, risk appetite has rebounded, and hot money inflows have spurred a dual rally in stocks and currency. The Taiwan stock market continued its ascent, and the New Taiwan Dollar (NTD) against the US dollar surged by more than one cent during intraday trading, strongly breaking through the NT1.3 level. It closed at NT1.409, appreciating by 7.9 cents, marking a new two-month high. Amidst heated trading, the total transaction volume in the Taipei and Yuanta foreign exchange markets exploded to a massive US.1365 billion.
Foreign reports indicate that US President Donald Trump stated that the US and Iran are close to reaching an agreement, significantly boosting market risk appetite. International oil prices and the US dollar index both fell, while stock markets rose strongly.
The Taiwan stock market today attacked 42,000 points for the first time, surging by 1017.21 points during intraday trading to a new high of 42156.06 points. Although the gains of heavyweight stocks narrowed towards the close, the index still set a new closing high of 41933.78 points, up 794.93 points, setting multiple new records for the Taiwan stock market, including index and market capitalization.
The bullish momentum of the Taiwan stock market attracted a large influx of hot money, aiding the appreciation of the New Taiwan Dollar. The NTD against the US dollar opened strongly at NT1.45 today and continued to rise, touching a high of NT1.338 during intraday trading, a strong gain of 1.5 cents. In the afternoon, US dollar buying emerged, narrowing the appreciation to within one cent.
Foreign exchange traders stated that the Taiwan stock market''s rally has not stopped, and foreign capital aggressively flowed in early in the day. However, as the exchange rate approached NT1.3, US dollar buying from importers, investment trusts, and others gradually emerged, with the final close at NT1.409. Given the market sentiment favoring further appreciation of the NTD, there is a chance to challenge NT1.2 in the future.
The market anticipates the imminent end of the US-Iran conflict, leading to a decrease in risk aversion and a weaker US dollar index, causing most Asian currencies to rise. According to central bank statistics, the Korean Won rose by 0.14% today, the Renminbi appreciated by 0.19%, the New Taiwan Dollar rose by 0.25%, and the Singapore Dollar surged by 0.36%. Previously, there were reports of the Bank of Japan intervening, causing a strong rebound in the Yen, but today the Yen pulled back after its gains, falling by 0.28%. (Editor: Lin Chia-Hsien) 1150507
Foreign reports indicate that US President Donald Trump stated that the US and Iran are close to reaching an agreement, significantly boosting market risk appetite. International oil prices and the US dollar index both fell, while stock markets rose strongly.
The Taiwan stock market today attacked 42,000 points for the first time, surging by 1017.21 points during intraday trading to a new high of 42156.06 points. Although the gains of heavyweight stocks narrowed towards the close, the index still set a new closing high of 41933.78 points, up 794.93 points, setting multiple new records for the Taiwan stock market, including index and market capitalization.
The bullish momentum of the Taiwan stock market attracted a large influx of hot money, aiding the appreciation of the New Taiwan Dollar. The NTD against the US dollar opened strongly at NT1.45 today and continued to rise, touching a high of NT1.338 during intraday trading, a strong gain of 1.5 cents. In the afternoon, US dollar buying emerged, narrowing the appreciation to within one cent.
Foreign exchange traders stated that the Taiwan stock market''s rally has not stopped, and foreign capital aggressively flowed in early in the day. However, as the exchange rate approached NT1.3, US dollar buying from importers, investment trusts, and others gradually emerged, with the final close at NT1.409. Given the market sentiment favoring further appreciation of the NTD, there is a chance to challenge NT1.2 in the future.
The market anticipates the imminent end of the US-Iran conflict, leading to a decrease in risk aversion and a weaker US dollar index, causing most Asian currencies to rise. According to central bank statistics, the Korean Won rose by 0.14% today, the Renminbi appreciated by 0.19%, the New Taiwan Dollar rose by 0.25%, and the Singapore Dollar surged by 0.36%. Previously, there were reports of the Bank of Japan intervening, causing a strong rebound in the Yen, but today the Yen pulled back after its gains, falling by 0.28%. (Editor: Lin Chia-Hsien) 1150507