Amidst Unresolved US-Iran Conflict and Upcoming Trump-Xi Summit, New Taiwan Dollar Falls Below 31.5
Against the backdrop of US-Iran tensions and concerns over US inflation, the New Taiwan Dollar has fallen, breaking the 31.5 per USD mark. The fourth consecutive day of net selling by foreign investors also contributed, pushing the currency to its lowest level in over a week.
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- 📰 Published: May 13, 2026 at 19:13
- 🔍 Collected: May 13, 2026 at 19:32 (18 min after Published)
- 🤖 AI Analyzed: May 13, 2026 at 23:00 (3h 28m after Collected)
(Central News Agency, Taipei, May 13) The prolonged US-Iran war, coupled with rising concerns about US inflation, has dampened market risk appetite. Foreign investors have withdrawn from Taiwanese stocks for four consecutive days and remitted funds abroad, causing both the stock and foreign exchange markets to fall. The New Taiwan Dollar broke the important 31.5 per USD barrier, closing at 31.506 today, a depreciation of 2.6 cents, marking a new low for over a week. The total transaction volume in the Taipei and Yuan-Tai foreign exchange markets was US$2.843 billion.
The US stock market has pulled back, and with the Trump-Xi summit approaching, the market is holding its breath in a thick atmosphere of wait-and-see. The Taiwanese stock market opened lower and fluctuated downwards today, hitting a low of 41014.53 points during the session. The decline narrowed by the end of the day, with the market closing at 41374.5 points, down 523.82 points.
Amidst international turmoil, foreign investors have been on the selling side for four consecutive days, withdrawing nearly NT$100 billion from Taiwanese stocks and tending to remit funds out of the country, creating depreciation pressure. The New Taiwan Dollar opened at 31.51 against the US dollar today, hitting an intraday low of 31.568 in early trading. Exporters entered the market to sell their foreign currency holdings upon seeing the exchange rate fall to a low level, but US dollar buying was slightly stronger, leading to a weaker and fluctuating exchange rate.
Furthermore, the Middle East conflict has pushed up gasoline prices, leading to a 3-year high in US consumer inflation for April. A foreign exchange trader stated bluntly that with US inflation higher than expected, the market is beginning to discuss the possibility of interest rate hikes. Coupled with the ongoing conflict in the Middle East, safe-haven sentiment is supporting the US dollar index, putting pressure on Asian currencies.
The foreign exchange trader pointed out that the international situation is changing, and economic uncertainty is increasing. The New Taiwan Dollar has turned to a depreciating trend this week and is expected to trade weakly in the range of 31.48 to 31.6 in the short term.
According to Central Bank statistics on major currencies against the US dollar, the US dollar index continued to rise by 0.24% today due to inflation concerns. Asian currencies were mixed, with the Chinese yuan rising slightly by 0.06% on the back of the Trump-Xi summit theme, the South Korean won falling by 0.07%, the New Taiwan Dollar depreciating by 0.08%, and the Japanese yen falling by 0.21%. (Editor: Lin Chia-hsien) 1150513
The US stock market has pulled back, and with the Trump-Xi summit approaching, the market is holding its breath in a thick atmosphere of wait-and-see. The Taiwanese stock market opened lower and fluctuated downwards today, hitting a low of 41014.53 points during the session. The decline narrowed by the end of the day, with the market closing at 41374.5 points, down 523.82 points.
Amidst international turmoil, foreign investors have been on the selling side for four consecutive days, withdrawing nearly NT$100 billion from Taiwanese stocks and tending to remit funds out of the country, creating depreciation pressure. The New Taiwan Dollar opened at 31.51 against the US dollar today, hitting an intraday low of 31.568 in early trading. Exporters entered the market to sell their foreign currency holdings upon seeing the exchange rate fall to a low level, but US dollar buying was slightly stronger, leading to a weaker and fluctuating exchange rate.
Furthermore, the Middle East conflict has pushed up gasoline prices, leading to a 3-year high in US consumer inflation for April. A foreign exchange trader stated bluntly that with US inflation higher than expected, the market is beginning to discuss the possibility of interest rate hikes. Coupled with the ongoing conflict in the Middle East, safe-haven sentiment is supporting the US dollar index, putting pressure on Asian currencies.
The foreign exchange trader pointed out that the international situation is changing, and economic uncertainty is increasing. The New Taiwan Dollar has turned to a depreciating trend this week and is expected to trade weakly in the range of 31.48 to 31.6 in the short term.
According to Central Bank statistics on major currencies against the US dollar, the US dollar index continued to rise by 0.24% today due to inflation concerns. Asian currencies were mixed, with the Chinese yuan rising slightly by 0.06% on the back of the Trump-Xi summit theme, the South Korean won falling by 0.07%, the New Taiwan Dollar depreciating by 0.08%, and the Japanese yen falling by 0.21%. (Editor: Lin Chia-hsien) 1150513