Demand from foreigners and exporters together boosted the Taiwan dollar today. |
Foreigners have bought a lot of Taiwan's stocks, making it the biggest factor strengthening the currency. |
Stock inflows are likely to continue, strengthening the Taiwan dollar. There's a higher chance of the currency rising. |
The bigger factor for the Taiwan dollar is still the yen's performance against the US dollar. |
The central bank may want any gain not to exceed the appreciation of other regional currencies. A weaker currency will help Taiwan's exports. |
There will be a short-term negative effect on the Taiwan dollar as people start to speculate who the next premier will be and how that will affect economic reform. |
There will probably be some funds flowing out of Taiwan, weakening the currency. More losses in the stock index may prompt some investors to sell more shares. The Taiwan dollar has room to decline today. |