The New Taiwan dollar yesterday advanced another 0.9 percent to hit a seven-month high of NT$29.7 versus the US dollar in Taipei trading, rising above the NT$30 mark for a second straight day on the back of hot money inflows, dealers said.
This week alone, the local currency picked up 2.2 percent after global capital regained interest in emerging markets, including Taiwan, on expectations that the US Federal Reserve would slow its pace of tightening, making investment in vehicles other than the greenback more attractive, dealers said.
The speculation won support from the Fed’s latest interest rate hike of 0.25 percentage points, moderating from its previous increases of 0.5 to 0.75 percentage points. Fed Chair Jerome Powell on Wednesday said that inflation is slowing and the US would avoid a recession this year.
Photo: Chen Mei-ying, Taipei Times
Global bourses welcomed the Fed’s dovish-leaning stance, with the TAIEX yesterday rallying 1.14 percent, or 175.03 points, to 15,595.16, Taiwan Stock Exchange (TWSE) data showed.
Foreign institutional investors yesterday increased holdings in local shares by a net NT$22.54 billion (US$758.9 million), after raising their stakes for the past 13 consecutive sessions, TWSE statistics showed.
If the trend continues, it would lend further strength to the local currency, dealers said.
Foreign exchange turnover yesterday amounted to US$1.66 billion at Taipei Forex Inc, the central bank said.
In other developments, the Cabinet yesterday appointed former vice premier Shen Jong-chin (沈榮津) as chairman of state-owned Taiwan Financial Holdings Co (台灣金控). Shen had also served as minister of economic affairs prior to his stint as vice premier from 2020 to last month.
Incumbent Taiwan Financial Holdings chairman Joseph Lyu (呂桔誠) is to stay on as the chairman of the group’s flagship subsidiary Bank of Taiwan (臺灣銀行).
Shen’s appointment takes effect today.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
CHANGE OF FORTUNES: Concern over a pricey valuation and the risk of tighter US curbs on chip sales to China have poured cold water on TSMC’s bullish momentum Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares fell the most in three months yesterday upon trading resumption, joining a global technology rout as investors dramatically soured on the promises of artificial intelligence (AI). The shares declined 5.62 percent to close at NT$924 in Taipei, dragging down the benchmark TAIEX, which fell 3.29 percent to 22,119.21 points amid a technical correction, Taiwan Stock Exchange data showed. Other chip stocks also fell, with ASE Technology Holding Co (日月光投控) plunging 9.86 percent, MediaTek Inc (聯發科) dropping 2.35 percent, Realtek Semiconductor Corp (瑞昱) falling 1.33 percent and United Microelectronics Corp (聯電) retreating 1.17 percent, while Apple