New Taiwan Dollar Rebounds Sharply After Briefly Falling Below 32 Against US Dollar

The New Taiwan Dollar (NTD) experienced significant volatility on August 19, 2026, briefly depreciating past the 32 mark against the US dollar before staging a rapid recovery. By midday, it settled at 31.888 NTD per USD, marking a gain of 5.7 cents.

Earlier in the day, the Taiwan Stock Exchange saw a sharp decline of over 900 points, coinciding with the NTD's dip. However, the US dollar's upward momentum faltered, and major Asian currencies also strengthened, prompting the NTD's rebound. It reached an intraday high of 31.872 before midday.

Recent weak US economic data has tempered expectations of further interest rate hikes by the Federal Reserve, leading to a weaker dollar index. This trend generally supports Asian currencies. However, geopolitical tensions and rising oil prices on August 18th had previously fueled a safe-haven demand for the dollar, causing Asian currencies to retreat. The dollar's rebound proved short-lived as US Treasury yields fell and the dollar index pulled back on August 19th.

Other Asian currencies also showed strength, with the Japanese Yen finding support near the 160 yen level and the South Korean Won breaking past 1400 won to a new high. The offshore Chinese Yuan also recovered. Currency traders are closely watching foreign investor flows in Taiwan's stock market, which, along with the dollar's strength, remains a key factor influencing the NTD. Attention is also focused on developments in the Middle East and the upcoming minutes from the Fed's July meeting, which are expected to provide further clarity on the Fed's policy direction.