Middle East Tensions Shift Taiwan Dollar to Weaker Close Ahead of U.S. Data

Geopolitical tensions in the Middle East have introduced new variables into the global market, impacting currency exchange rates. Reports suggest Iran may prohibit vessels from the United States, Israel, and allied nations from transiting the Strait of Hormuz. This development has fueled a rebound in international oil prices and heightened risk aversion among investors.

In Taiwan, these global shifts were reflected in the financial markets. The Taiwan Stock Exchange experienced volatility, opening higher before declining. Foreign investors, who had initially shown buying interest, turned into sellers in the afternoon, contributing to capital outflows.

Consequently, the New Taiwan Dollar, which had shown strength earlier, reversed its trend and depreciated against the U.S. dollar. It closed the trading day at 32.288 TWD per USD. Investors are now closely watching upcoming U.S. non-farm payroll data for further market direction.