Yen's sharp rise sparks intervention speculation! New Taiwan Dollar plunges in the afternoon, testing the 32 mark again

The New Taiwan Dollar experienced a significant downturn on Thursday, depreciating by 3.6 cents to close at 31.91 against the US Dollar. This marks a nearly three-month low for the currency and brings it precariously close to the psychologically important 32 mark.

The weakening occurred despite a broader trend of Asian currencies strengthening against the US Dollar. The Japanese Yen, in particular, saw a sharp surge in the afternoon, leading to speculation about potential intervention by Japanese authorities. Other regional currencies like the South Korean Won and Singapore Dollar also posted gains.

Analysts attribute the New Taiwan Dollar's decline to substantial selling of Taiwanese stocks by foreign investors, coupled with significant capital outflow. The benchmark Taiex index fell by 274.83 points, with foreign investors reversing their previous day's buying trend to become net sellers of NT$89.046 billion.

Market participants are now closely watching for the release of US non-farm payroll data later in the day, which could influence the Federal Reserve's interest rate decisions. The currency market also remains attentive to any further actions by Japanese officials regarding the Yen's rapid appreciation.