TAIPEI (Taiwan News) — Foreign capital outflows continued to weigh on Taiwan’s currency on Friday, with the Taiwan dollar falling to a near three-month low during the session.
In the foreign exchange market, the Taiwan dollar opened at 31.92 against the US dollar but quickly weakened as capital outflows continued. Range-bound trading followed, with the intraday low reaching 31.995, just below the 32 level, according to Anue.
For the week, the currency weakened by NT$0.07, or 0.22%. Traders attributed the second consecutive weekly decline to short-term correction in the local equity market, according to CNA.
Foreign investors remained net sellers on Friday, offloading NT$77.78 billion (US$2.44 billion) in Taiwanese equities. This marked a second consecutive session of selling, bringing total net equity outflows to more than NT$160 billion.
Foreign exchange traders said the 31.9 level has become a sensitive threshold. Whether the currency tests 32 next week will depend on foreign selling flows, the strength of a stock market rebound, and month-end exporter demand.
