USD/TWD rises above 32 as foreign equity selling and dividend remittances drive demand for the US currency, central bank steps in to stabilize flows.
The Taiwan Dollar (TWD) has extended losses, with USD/TWD trading above 32, driven by foreign equity outflows and seasonal demand for USD linked to dividend and profit remittances. The move reflects flow dynamics rather than a deterioration in Taiwan’s economic fundamentals.
Central bank officials attribute recent weakness to broader USD strength, portfolio outflows, and elevated equity valuations. Reports indicate authorities have urged banks to expedite large USD sell orders to increase supply and curb depreciation pressure.
Technical indicators show bullish momentum for USD/TWD, though overbought conditions may limit further upside. Resistance is seen at 32.22, with risks of a pullback remaining.