Taiwan stocks pull back, New Taiwan dollar ends 4-day rally, closes in red for the week, up 2.19 cents
The New Taiwan dollar ended its four-day appreciation streak, depreciating by 2 cents to close at 31.429 against the US dollar today. This was influenced by rising tensions in the Middle East and a pullback in AI concept stocks, causing the Taiwan stock market to fluctuate significantly, with the weighted index dropping 329.84 points.
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- 📰 Published: May 8, 2026 at 18:57
- 🔍 Collected: May 8, 2026 at 19:32 (34 min after Published)
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(Central News Agency reporter Pan Tzu-yu, Taipei, 8th) Tensions in the Middle East escalated again due to disputes in the Strait of Hormuz, dampening market risk appetite, leading to a rebound in the US dollar index and pressure on both stocks and foreign exchange. Under two-way operations by foreign investors, the New Taiwan dollar fluctuated against the US dollar today, closing at 31.429, depreciating by 2 cents. The total transaction volume in the Taipei and Yuanta foreign exchange markets was US$2.7445 billion.
A new wave of conflict between the United States and Iran raised investor concerns, coupled with a retracement of gains in artificial intelligence (AI) concept stocks, causing the Taiwan stock market to fluctuate over 900 points at high levels today. The weighted index ultimately closed at 41603.94 points, down 329.84 points. Foreign investors also ended their four consecutive days of buying, turning to withdraw NT$12 billion from Taiwan stocks today.
After opening at 31.44 against the US dollar, the New Taiwan dollar quickly depreciated to an intraday low of 31.465, reflecting the rebound of the US dollar and the decline of Taiwan stocks. However, the sustained inflow of foreign capital from the previous day's net buying, coupled with exporters entering the market, led to a turnaround in the exchange rate, rising to a high of 31.365. In the afternoon, foreign investors began to outflow funds, and importers' bargain-hunting also pushed up the US dollar, causing the New Taiwan dollar to slightly fall back by the end of the day, ending its four-day rally.
The New Taiwan dollar also closed its weekly line today, having appreciated by a total of 2.19 cents or 0.7% this week, turning red on the weekly chart.
A foreign exchange trader pointed out that the current rally in Taiwan stocks has been astonishing, taking a slight breather today, but the correction is not significant, indicating that the bullish trend has not loosened. "It's normal for stocks to pull back after significant gains; as long as Taiwan stocks remain strong, the New Taiwan dollar is unlikely to be too weak."
Foreign exchange traders believe that the New Taiwan dollar's exchange rate currently mainly reflects capital flows. As long as Taiwan stocks continue to surge, the New Taiwan dollar can maintain its appreciating trend, advancing step by step. However, to break through the 31.2 level in one go, new positive factors may be needed, such as a plunge in international oil prices, the lifting of inflation warnings, or dovish signals from the Federal Reserve.
However, with the prospect of the Middle East conflict remaining unclear, if market concerns intensify and Taiwan stocks turn to sideways consolidation, foreign exchange traders believe that the New Taiwan dollar's appreciation will temporarily stall, consolidating in the short term within the 31.300 to 31.700 range. (Editor: Chang Chun-mao) 1150508
A new wave of conflict between the United States and Iran raised investor concerns, coupled with a retracement of gains in artificial intelligence (AI) concept stocks, causing the Taiwan stock market to fluctuate over 900 points at high levels today. The weighted index ultimately closed at 41603.94 points, down 329.84 points. Foreign investors also ended their four consecutive days of buying, turning to withdraw NT$12 billion from Taiwan stocks today.
After opening at 31.44 against the US dollar, the New Taiwan dollar quickly depreciated to an intraday low of 31.465, reflecting the rebound of the US dollar and the decline of Taiwan stocks. However, the sustained inflow of foreign capital from the previous day's net buying, coupled with exporters entering the market, led to a turnaround in the exchange rate, rising to a high of 31.365. In the afternoon, foreign investors began to outflow funds, and importers' bargain-hunting also pushed up the US dollar, causing the New Taiwan dollar to slightly fall back by the end of the day, ending its four-day rally.
The New Taiwan dollar also closed its weekly line today, having appreciated by a total of 2.19 cents or 0.7% this week, turning red on the weekly chart.
A foreign exchange trader pointed out that the current rally in Taiwan stocks has been astonishing, taking a slight breather today, but the correction is not significant, indicating that the bullish trend has not loosened. "It's normal for stocks to pull back after significant gains; as long as Taiwan stocks remain strong, the New Taiwan dollar is unlikely to be too weak."
Foreign exchange traders believe that the New Taiwan dollar's exchange rate currently mainly reflects capital flows. As long as Taiwan stocks continue to surge, the New Taiwan dollar can maintain its appreciating trend, advancing step by step. However, to break through the 31.2 level in one go, new positive factors may be needed, such as a plunge in international oil prices, the lifting of inflation warnings, or dovish signals from the Federal Reserve.
However, with the prospect of the Middle East conflict remaining unclear, if market concerns intensify and Taiwan stocks turn to sideways consolidation, foreign exchange traders believe that the New Taiwan dollar's appreciation will temporarily stall, consolidating in the short term within the 31.300 to 31.700 range. (Editor: Chang Chun-mao) 1150508