Picture, text / CTWANT
Affected by the higher-than-expected US CPI data, the four major US stock indexes were all in ink. In addition, with the upcoming FOMC interest rate decision-making meeting next week, the issue between inflation and interest rate hikes has caused Taiwan stocks to be startled. In particular, the Taiwan foreign exchange market in Taipei closed at 31.293 yuan against the US dollar today, a heavy depreciation of 1.63 yuan.
The four major U.S. stock indexes closed in the red on Wednesday, and Taiwan stocks opened lower today, rising to 14,750.28 points during the session, but the index moved closer to flat after midday, closing at 14,670.04 points, up 11.73 points, with a trading volume of 178.947 billion yuan; three Large corporations sold more than 5.627 billion yuan, and foreign investors sold more than 5.813 billion yuan. Under the remittance of foreign capital, the Taiwan dollar continued to depreciate during the session. It once touched 31.149 yuan, and finally closed at 31.13 yuan, establishing a new normal of 31 yuan.
The primary key to currency devaluation is the hawkish interest rate hike by the US Federal Reserve (FED), which has impacted the global economy and monetary policy. Central banks around the world have adopted interest rate hikes in response to the devaluation of their currencies. Although Taiwan’s central bank has raised interest rates, the rate is not fast enough, which makes the US Taiwan’s interest rate spread widens, making it difficult to stop capital outflows. If the U.S. Consumer Price Index (CPI) does not drop, it will be difficult to stop the depreciation of the Taiwan dollar. Moreover, the U.S. target interest rate will be raised to 4% by the end of the year. If the Fed’s attitude continues to be strong, the Taiwan dollar will continue to suffer from depreciation pressure.
The devaluation of the New Taiwan dollar means that the original NTD 27 can be exchanged for 1 US dollar, and now it takes NT 31 to exchange it for 1 US dollar, which makes people who previously deposited US dollars in the market at 27 and 28 dollars will be happy; Stocks and asset stocks will be directly impacted, and unless the United States softens its hawkish interest rate hike attitude, foreign capital may shrink its hands, and the depreciation of the Taiwan dollar may stop.
Non-U.S. currencies have also been falling below key price levels this week. After the yen and South Korean won broke the bottom, the offshore renminbi has been in violation for more than two years, and it depreciated sharply yesterday to break the 7 yuan to 1 dollar mark. The New Taiwan dollar opened at 31.15 yuan against the U.S. dollar today, and it fell to 31.36 yuan at a minimum. Although the decline in the late session slightly converged, it still depreciated by 1.63 yuan to close at 31.293 yuan.
The New Taiwan dollar has received 31 characters for three consecutive days. Under the pressure of remittance of funds, not only 30 yuan cannot be returned in the short-term, but 31 yuan has become a normal state. If the United States raises interest rates aggressively, people from Huiyin pointed out that it is not ruled out that it will drop to 32 yuan. Yuan. But not only the Taiwan dollar is depreciating, but the whole world is depreciating. At this stage, the Taiwan dollar cannot stand alone. The weakening of Asian currencies is a global trend. Although the depreciation of the Taiwan dollar is much larger than that of previous years, compared with other currencies, the depreciation is still relatively moderate.
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