The Taiwan Dollar (TWD) extended its decline as foreign equity outflows weighed on the currency, though it pared part of the drop into the Asian close. Trading talk centred on the central bank, CBC, being active in leaning against depreciation, a factor seen as slowing the pace rather than changing the broader direction.
Foreign Equity Outflows Pressure TWD
Foreign investors sold a record TWD302.5bn of Taiwanese equities on Thursday as the global tech sell-off intensified, and attention has turned to whether that selling eases after the sharp move.
Central Bank Response And Market Outlook
Tentative stabilisation in US equities, alongside softer Treasury yields and a weaker USD, offered some near-term relief, but a more durable TWD rebound was framed as dependent on improved underlying flows, with CBC smoothing more likely to restrain excessive volatility than engineer a full reversal.
