The New Taiwan Dollar closed at 31.848 per US dollar on August 21, 2026, its strongest level in nearly two months, while the TAIEX rose 290.55 points to 45224.29, reclaiming 45,000. Foreign and Chinese institutional investors net-bought NT$283.05 billion, their second straight day of buying, driving the synchronized currency-equity move.
What drove the New Taiwan Dollar's near-two-month high this week?
The New Taiwan Dollar closed at 31.848 per US dollar on August 21, 2026, up NT$0.077 (7.7 fen), marking a third consecutive day of gains and its strongest close in nearly two monthsCITE:E1CITE:E7. Hot-money inflows helped the currency hold above the 31.8 level and settle at the day's highCITE:E7.
On a weekly basis, the currency had earlier broken above the 32 mark before turning volatile, and briefly dipped back toward depreciation on foreign capital outflows, but the central bank's active management kept it above the 31-dollar handleCITE:E5CITE:E10. It ended the week up NT$0.198 (1.98 jiao), or 0.62%, for a fourth consecutive weekly gainCITE:E5CITE:E10.
How did the TAIEX perform and what role did institutional investors play?
The TAIEX rose 290.55 points to close at 45224.29 on August 21, reclaiming the 45,000-point level, with all three institutional investor categories net buyers on the dayCITE:E3CITE:E9. Combined institutional net buying reached NT$331.05 billion, of which foreign and Chinese institutional investors accounted for NT$283.05 billionCITE:E9.
How large was the foreign and Chinese capital buying?
Foreign and Chinese institutional investors posted net buying of NT$283.05 billion on August 21, their second consecutive day of net buyingCITE:E4.
Where does the New Taiwan Dollar stand versus other Asian currencies?
The New Taiwan Dollar's gains came alongside broader regional currency moves against a US Dollar Index that edged up just 0.02% and stayed around the 98 levelCITE:E11.
| Currency/Index | Move on the day | Notable level |
|---|
| US Dollar Index | +0.02% | Around 98 |
| Japanese Yen | -0.24% | Weakened as US Treasury yields rose |
| Korean Won | +0.7% | Briefly broke 1,380 per dollar, highest in over a year |
| Offshore Chinese Yuan | +0.05% | Broke 6.72 per dollar, highest in 3.5 years |
CITE:E11
What happened to foreign exchange trading volume?
Combined trading volume on the Taipei and Yuantai foreign exchange markets fell to US$1.62 billion on August 21, dropping below the US$2 billion markCITE:E2CITE:E8. Market wait-and-see sentiment rose as trading activity contractedCITE:E8.
What do market participants expect next for the New Taiwan Dollar?
A foreign exchange trader said the New Taiwan Dollar has shed its earlier depreciation trend, though foreign capital has not turned into a full-scale inflow, leaving flows moving both in and out and the currency in a consolidative-appreciation patternCITE:E6. A bank's foreign exchange manager said the currency is expected to trade in the 31.8-to-32 range in the near term, citing rising month-end exporter dollar-selling demand and the central bank's clear stance on defending the currencyCITE:E12.
What this means
The New Taiwan Dollar's near-two-month high and the TAIEX's return above 45,000 moved together on August 21, both tied to the same NT$283.05 billion of foreign and Chinese capital flowing into equitiesCITE:E4CITE:E9. That equity-side buying came alongside thinner currency-market activity, with FX turnover of just US$1.62 billion, below the US$2 billion markCITE:E2CITE:E8. The New Taiwan Dollar's 0.62% weekly gain also trailed the Korean won's single-day 0.7% jump and the offshore yuan's 3.5-year high, suggesting the currency moved within a broader regional pattern rather than on an isolated driverCITE:E11. The trader's and bank manager's comments point in the same direction: flows remain two-way rather than a sustained inflow, and the 31.8-to-32 forecast range assumes month-end exporter dollar-selling will offset further gainsCITE:E6CITE:E12.
Author's Take・EffectStory 編輯部
The headline framing of a stock-currency virtuous cycle holds up on the equity side but looks thinner on the currency side. FX turnover of US$1.62 billion on August 21, below the US$2 billion mark, means the 7.7-fen daily gain to 31.848 rode on light liquidity rather than broad dollar selling — consistent with the trader's own description of flows moving both in and out rather than a sustained inflow. Equities told a clearer story: NT$283.05 billion of net foreign and Chinese buying pushed the TAIEX back above 45,000, a scale that dwarfs the currency market's turnover that day. The figure worth watching next is whether that US$1.62 billion FX turnover expands alongside continued institutional equity buying, or stays this thin — since the bank manager's own 31.8-to-32 range forecast already assumes month-end exporter dollar-selling will cap further currency gains.