TAIPEI (Taiwan News) — The Taiwan dollar posted its second consecutive gain against the US dollar on Wednesday, supported by a weaker US dollar and renewed foreign capital inflows.

The local currency strengthened to NT$31.29 per US dollar shortly after the market opened before easing to around NT$31.3 as demand for the greenback picked up. Since Jan. 21, the Taiwan dollar has appreciated from about NT$31.7 per US dollar, according to Yahoo Stocks.

The US dollar softened after US President Donald Trump said the recent weakness in the currency was “great,” adding that a weaker dollar would support US exports, Reuters reported. The dollar index fell to a four-year low on Tuesday against a basket of major currencies.

Foreign exchange traders said elevated policy uncertainty and shifting signals from Washington have weighed on confidence in US dollar assets. Trump’s remarks were widely interpreted as signaling tolerance for a weaker currency, adding pressure to the dollar.

Against this backdrop, renewed foreign fund inflows lifted the Taiwan dollar on Tuesday. The currency gained more than NT$0.10 intraday, according to CNA.

Banking sources said the central bank intervened near the NT$31.4 level to smooth volatility and curb excessive appreciation. The upward trend carried into Wednesday, with investors watching closely whether similar measures will be taken if gains accelerate further.