TAIPEI, July 1 – The Taiwan dollar continued its upward momentum today, closing at NT$29.185 against the U.S. dollar, marking a 7.17-cent appreciation. This comes shortly after the key “anchoring day” on June 30, when listed companies finalized their semi-annual financial reports.
Unlike previous sessions, the central bank refrained from aggressive intervention to curb the local currency’s appreciation. Early morning trading saw the exchange rate strengthen past the 29.2 threshold, hitting a high of NT$29.164. By midday, it had slightly adjusted to NT$29.207, but remained comfortably above the 29.2 line.
Momentum continued in the afternoon, with the Taiwan dollar rising further and reaching the day’s peak at NT$29.124 after 2:00 PM. However, around 3:30 PM, the central bank stepped in, likely to manage volatility, nudging the exchange rate back to NT$29.185 by the closing bell.
Trading Volume Insights
Trading activity was relatively subdued compared to the previous day.
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Morning session volume: US$1.139 billion
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Full-day volume: US$1.758 billion
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Previous day total: US$1.964 billion
This decrease in volume suggests that pressures from financial report compilations have eased, allowing the central bank to moderate its market activity. Analysts view this as a signal of the central bank’s current tolerance for a gradual appreciation of the Taiwan dollar.
Market Outlook
With the semi-annual reporting deadline now behind, and the Taiwan dollar maintaining strength above the 29.2 mark, market watchers anticipate a slow and steady upward trend in the near term—unless external shocks or major policy shifts occur.
