New Taiwan Dollar Falls for 3rd Day on Xi-Trump Summit Caution; Trading Volume Shrinks
With the market in a strong wait-and-see mode ahead of the Xi-Trump summit, the New Taiwan Dollar depreciated against the US dollar for the third consecutive day. Although Taiwanese stocks rebounded, the foreign exchange market's trading volume dropped significantly to its lowest level since April 23.
📋 Article Processing Timeline
- 📰 Published: May 14, 2026 at 19:06
- 🔍 Collected: May 14, 2026 at 19:32 (26 min after Published)
- 🤖 AI Analyzed: May 15, 2026 at 01:12 (5h 39m after Collected)
(Central News Agency, Taipei, 14th, by Pan Tzu-yu) With the Xi-Trump summit underway, the market is highly cautious. Despite a rebound in Taiwanese stocks, which reclaimed the 5-day moving average, foreign investors engaged in two-way trading, and the New Taiwan Dollar continued its depreciation against the US dollar. It closed at 31.51, down 0.4 cents, marking its third consecutive day in the red. The total trading volume in the Taipei and Cosmos foreign exchange markets fell below the US$2 billion mark to US$1.9755 billion, the lowest since April 23.
Foreign exchange traders analyzed that the political and economic situation has been volatile this week. With Chinese President Xi Jinping meeting with US President Trump today, investors are focused on changes in US-China relations and the Taiwan issue. Additionally, higher-than-expected US inflation data has made a Federal Reserve rate cut less likely. With these uncertainties brewing, the market is in a wait-and-see mode, and trading has become more conservative.
The New Taiwan Dollar opened at 31.49 against the US dollar today. With unclear news, the exchange rate was locked in a narrow range, with an intraday high of 31.485 and a low of 31.531. Compared to yesterday, both the trading range and volume were significantly smaller, indicating a strong cautious atmosphere in the market.
Stocks and the currency went their separate ways today. Although the NT dollar continued to depreciate, Taiwanese stocks, driven by a surge in US tech stocks, rose strongly in the morning, reclaiming the 42,000-point level. Later, profit-taking pressure emerged, and the gains narrowed. The market closed at 41751.75, still up 377.25 points.
Forex traders said the NT dollar's return to a depreciating trend was mainly due to market news disturbances. In addition to increased economic uncertainty, rising US inflation will also push up the US dollar index, suppressing Asian currencies. On the other hand, amid rising US inflation, the AI theme is supporting market optimism. Taiwanese stocks have started to rebound, and foreign investors have switched from selling to buying. If the bull market continues, it should provide support for the exchange rate.
The central bank's statistics on major currency movements today showed the US dollar index continuing to rise by 0.05%. Most major Asian currencies fell, with the NT dollar slightly down by 0.01%, the Japanese yen down by 0.06%, and the South Korean won falling by 0.21%. The Chinese yuan bucked the trend, rising slightly by 0.04%. (Editor: Lin Chia-hsien) 1150514
Foreign exchange traders analyzed that the political and economic situation has been volatile this week. With Chinese President Xi Jinping meeting with US President Trump today, investors are focused on changes in US-China relations and the Taiwan issue. Additionally, higher-than-expected US inflation data has made a Federal Reserve rate cut less likely. With these uncertainties brewing, the market is in a wait-and-see mode, and trading has become more conservative.
The New Taiwan Dollar opened at 31.49 against the US dollar today. With unclear news, the exchange rate was locked in a narrow range, with an intraday high of 31.485 and a low of 31.531. Compared to yesterday, both the trading range and volume were significantly smaller, indicating a strong cautious atmosphere in the market.
Stocks and the currency went their separate ways today. Although the NT dollar continued to depreciate, Taiwanese stocks, driven by a surge in US tech stocks, rose strongly in the morning, reclaiming the 42,000-point level. Later, profit-taking pressure emerged, and the gains narrowed. The market closed at 41751.75, still up 377.25 points.
Forex traders said the NT dollar's return to a depreciating trend was mainly due to market news disturbances. In addition to increased economic uncertainty, rising US inflation will also push up the US dollar index, suppressing Asian currencies. On the other hand, amid rising US inflation, the AI theme is supporting market optimism. Taiwanese stocks have started to rebound, and foreign investors have switched from selling to buying. If the bull market continues, it should provide support for the exchange rate.
The central bank's statistics on major currency movements today showed the US dollar index continuing to rise by 0.05%. Most major Asian currencies fell, with the NT dollar slightly down by 0.01%, the Japanese yen down by 0.06%, and the South Korean won falling by 0.21%. The Chinese yuan bucked the trend, rising slightly by 0.04%. (Editor: Lin Chia-hsien) 1150514