New Taiwan Dollar Falls to 32.249, Down 6 Cents, Hits Lowest Level Since May Last Year

On Tuesday (16th), the Taiwan stock market briefly dropped below the 45,000-point mark during morning trading but gradually recovered, closing down only 6.61 points. In contrast, the Taipei foreign exchange market saw a decline in value alongside rising trading volume, hitting a new low not seen since early May last year. The New Taiwan dollar closed at 32.249, down 6 cents, with trading volume at the Taipei Foreign Exchange Brokers reaching $1.856 billion.

The New Taiwan dollar opened at 32.17 (up 1.9 cents) and briefly rose to 32.10, fluctuating between gains and losses. After midday, it turned fully bearish, dropping as low as 32.291, resulting in a full-day high-low spread of 1.91 cents.

Among major Asian currencies, the South Korean won rebounded by 0.4%, while the Japanese yen, Thai baht, and Singapore dollar each rose about 0.05%. The U.S. dollar index and the Chinese yuan remained flat to slightly up. In comparison, the New Taiwan dollar weakened relatively, closing down 0.19%.

Cathay Securities Futures Research Department noted that U.S. June PPI declined 0.3% month-on-month but rose 5.5% year-on-year, primarily due to falling energy and gasoline prices. However, core goods and service prices remain elevated, indicating that cost pressures have not fully subsided. While the data may reduce the Fed's short-term rate hike probability, it still suggests the possibility of maintaining high interest rates for an extended period.