News / Taiwan / cnyes
TWD Defies Regional Slump as Taiwan Stocks Surge Over 800 Points
cnyes · 2026-09-01
Despite a broader decline in Asian currencies amid Fed hawkishness and geopolitical tensions, the TWD rose to 31.633 against the USD as foreign inflows fueled a massive rally in Taiwan stocks.
What Happened
Taiwan Stock Market Rally: Taiwan's stock market staged a powerful rally today, surging 820.25 points to close at 46,948.72, marking a two-month high. Institutional investors were net buyers, with foreign capital inflows totaling approximately NT$26.7 billion, signaling a strong rebound in market sentiment.
Currency Market Divergence: While the US dollar index gained strength following hawkish signals from the Federal Reserve, putting pressure on regional currencies like the KRW and JPY, the New Taiwan Dollar bucked the trend. The currency closed at 31.633 against the USD, appreciating by 3.3 cents, supported by the robust performance of local equities.
Fed Policy Outlook: Federal Reserve Chair Waller recently indicated that further monetary tightening may be necessary if inflation does not show a clear path toward the 2% target. This hawkish rhetoric has intensified market expectations for a potential rate hike in September, with the probability currently estimated at 60%.
Market Liquidity and Sentiment: Total trading volume in the Taipei and Yuanta foreign exchange markets reached $2.617 billion, reflecting high market activity. Despite ongoing geopolitical tensions in the Middle East and uncertainty surrounding US interest rate policy, the strong correlation between the stock market and currency performance remains a key focus for investors.