USD Index Breaks 99; TWD Depreciates for 4th Consecutive Day, Weekly Line Turns Black
Higher-than-expected US inflation data fueled expectations that the Fed will maintain high interest rates, pushing the US Dollar Index past 99. The New Taiwan Dollar closed lower at 31.551, depreciating for four straight sessions.
📋 Article Processing Timeline
- 📰 Published: May 15, 2026 at 19:28
- 🔍 Collected: May 15, 2026 at 20:02 (34 min after Published)
- 🤖 AI Analyzed: May 15, 2026 at 20:58 (56 min after Collected)
CNA News
(CNA Reporter Pan Tzu-yu, Taipei 15th) US inflation data came in higher than expected, leading markets to bet that the Federal Reserve will maintain high interest rates for a longer period. The US Dollar Index broke through the 99 mark, causing Asian currencies to tumble. The New Taiwan Dollar extended its depreciation trend against the US dollar, closing at 31.551 today, down 4.1 cents. The exchange rate has fallen for four consecutive sessions, with a total trading volume of 2.262 billion USD across the Taipei and Cosmos foreign exchange markets.
The Trump-Xi summit has concluded with a lukewarm market reaction, leaving equities and foreign exchange largely driven by capital flows. Taiwan's stock market experienced a roller-coaster ride today; in early trading, it surged over 650 points to a record high of 42,408 points. However, the drop deepened mid-session as it tested 41,000 points, resulting in a staggering 1,391-point fluctuation. It ultimately closed down 579.39 points at 41,172.36.
The TWD opened at 31.53 against the USD today. In early trading, due to foreign capital inflows, the currency briefly rebounded to an intra-day high of 31.45. However, after the stock market peaked and turned negative, foreign capital reversed and flowed out in the afternoon, pushing the currency to an intra-day low of 31.565. It finished with a slight loss, hitting a nearly half-month low.
Foreign exchange traders analyzed that with the US-Iran conflict in a stalemate and no major breakthroughs from the Trump-Xi summit, the TWD exchange rate has returned to being driven by capital. After a short-term rally in Taiwan stocks, selling pressure emerged at the top. This week, foreign investors switched to two-way operations, leading to a correction in the TWD.
The TWD's weekly line also closed today, showing a cumulative depreciation of 1.22 dimes, or 0.39%, turning the weekly line black.
Foreign exchange traders pointed out that higher-than-expected US inflation makes the case for a Fed rate cut increasingly weak. Some investors are even pivoting to focus on the possibility of rate hikes. Consequently, the USD Index broke the 99 mark. If the dollar remains strong, Asian currencies will remain suppressed. Conversely, if the US-Iran conflict settles and risk aversion recedes, support for the dollar will weaken, potentially allowing non-USD currencies to rebound.
According to central bank statistics, the USD Index surged 0.59% today, dragging down Asian currencies across the board: TWD fell 0.13%, RMB dropped 0.25%, JPY depreciated 0.33%, and KRW plunged 0.37%.
Looking ahead to the TWD's trend next week, foreign exchange traders stated bluntly that the international situation is still unclear. The TWD is estimated to fluctuate between 31.35 and 31.7 in the short term. Markets will focus on the development of the US-Iran war and whether the US and China release more positive signals regarding the Trump-Xi summit to provide new guidance. If the upward momentum in Taiwan stocks continues, it may also help lift the exchange rate. (Editor: Lin Chia-hsien) 1150515
(CNA Reporter Pan Tzu-yu, Taipei 15th) US inflation data came in higher than expected, leading markets to bet that the Federal Reserve will maintain high interest rates for a longer period. The US Dollar Index broke through the 99 mark, causing Asian currencies to tumble. The New Taiwan Dollar extended its depreciation trend against the US dollar, closing at 31.551 today, down 4.1 cents. The exchange rate has fallen for four consecutive sessions, with a total trading volume of 2.262 billion USD across the Taipei and Cosmos foreign exchange markets.
The Trump-Xi summit has concluded with a lukewarm market reaction, leaving equities and foreign exchange largely driven by capital flows. Taiwan's stock market experienced a roller-coaster ride today; in early trading, it surged over 650 points to a record high of 42,408 points. However, the drop deepened mid-session as it tested 41,000 points, resulting in a staggering 1,391-point fluctuation. It ultimately closed down 579.39 points at 41,172.36.
The TWD opened at 31.53 against the USD today. In early trading, due to foreign capital inflows, the currency briefly rebounded to an intra-day high of 31.45. However, after the stock market peaked and turned negative, foreign capital reversed and flowed out in the afternoon, pushing the currency to an intra-day low of 31.565. It finished with a slight loss, hitting a nearly half-month low.
Foreign exchange traders analyzed that with the US-Iran conflict in a stalemate and no major breakthroughs from the Trump-Xi summit, the TWD exchange rate has returned to being driven by capital. After a short-term rally in Taiwan stocks, selling pressure emerged at the top. This week, foreign investors switched to two-way operations, leading to a correction in the TWD.
The TWD's weekly line also closed today, showing a cumulative depreciation of 1.22 dimes, or 0.39%, turning the weekly line black.
Foreign exchange traders pointed out that higher-than-expected US inflation makes the case for a Fed rate cut increasingly weak. Some investors are even pivoting to focus on the possibility of rate hikes. Consequently, the USD Index broke the 99 mark. If the dollar remains strong, Asian currencies will remain suppressed. Conversely, if the US-Iran conflict settles and risk aversion recedes, support for the dollar will weaken, potentially allowing non-USD currencies to rebound.
According to central bank statistics, the USD Index surged 0.59% today, dragging down Asian currencies across the board: TWD fell 0.13%, RMB dropped 0.25%, JPY depreciated 0.33%, and KRW plunged 0.37%.
Looking ahead to the TWD's trend next week, foreign exchange traders stated bluntly that the international situation is still unclear. The TWD is estimated to fluctuate between 31.35 and 31.7 in the short term. Markets will focus on the development of the US-Iran war and whether the US and China release more positive signals regarding the Trump-Xi summit to provide new guidance. If the upward momentum in Taiwan stocks continues, it may also help lift the exchange rate. (Editor: Lin Chia-hsien) 1150515