Two factors forced the central bank to let go of the closing price of the New Taiwan dollar for the first time in 26 months.

The US Federal Reserve’s “Eagle Wave” is too strong, plusRMBThe central parity rate and spot exchange rate against the US dollar both depreciated and broke the 6.8 mark, and our central bank could not hold it. Taipei’s foreign exchange marketNew Taiwan DollarAgainst the U.S. dollar today (19), the closing price fell below the 30 yuan mark, depreciating 2.9 cents to close at 30.02 yuan, which is the first time the “3-character” has been seen in the closing price since the end of May 2020, hitting a new closing low in about 26 months. Amount of 868 million US dollars.

Influenced by comments from Fed officials about the need for further rate hikes, US dollar indexIt rose to refresh a near one-month high of 107.72.

Therefore, the divergence of monetary policy between China and the United States has further deepened, making theRMBThe central parity against the US dollar also depreciated 263 points to 6.8065, the highest level since September 2020.RMBThe central parity against the US dollar fell below the 6.80 mark for the first time; while the offshoreRMBThe exchange rate once fell to 6.8291, and also fell below the 6.82 mark.

Affected by the above two factors, it is often regulated at the end of theNew Taiwan DollarThe central bank, which held the exchange rate at 29 yuan, could not hold it today. It finally let go and dropped 2.9 cents to close at 30.02 yuan, which is the first time it has seen a “3 prefix” in the closing price since the end of May 2020.

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According to the data,New Taiwan DollarAgainst the U.S. dollar, it closed at 30.032 yuan on May 29, 2020 and 30.045 yuan on May 28, 2020. Although the closing price today is not lower than this, it is a new closing low in 26 months.

The monthly trend of the New Taiwan dollar against the US dollar. (The picture is taken from Juheng.com)


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