Taiwan stocks and the currency came under pressure in October. The TAIEX closed at 45211.83 on October 30, down 2728 points for the month, a drop of over 5.6%. Foreign investors sold nearly NT$1 trillion in Taiwan stocks during the month, setting a record for the largest single-month net sell. The NT dollar against the U.S. dollar also depreciated sharply by 6.26 Jiao in October, sliding from 31.852 on September 30 to 32.478, a monthly decline of 1.96%, marking two straight monthly losses. Bank dealers said the NT dollar remains driven by foreign capital flows, with stock market moves affecting foreign investor activity, and the central bank's stance will also be key to the outlook.
Black Friday Hit for Stocks and Currency
U.S. tech giants reported weaker-than-expected earnings, sparking concerns about monetization of AI investments and spreading selling pressure in tech stocks. Taiwan stocks suffered a Black Friday on the last trading day of October, plunging 1156.5 points, or 2.49%, to close at 45211.83, with turnover of NT$877.77 billion, falling below the six-month moving average of 45314. Foreign investors sold NT$112.467 billion in Taiwan stocks in a single day, the 7th-largest net sell on record, adding to depreciation pressure in the forex market.
Exporters' Sales Ease Decline With Late-Day Rebound
With foreign investors continuing to sell Taiwan stocks and remit funds abroad, the Taipei forex market faced depreciation pressure on the last trading day of October, falling over 1.8 Jiao intraday to 32.676. On month-end demand for exporter FX sales, along with central bank intervention, the NT dollar staged a late-day rebound to close slightly higher at 32.478. On a weekly basis, it snapped a four-week losing streak, rising 3 cents, or 0.09%, but still closed the month down 6.26 Jiao.
Outlook Focused on Foreign Investors and Central Bank
Looking ahead, as month-end exporter FX sales support fades, the forex market will return to fund-flow dominance. Banks believe the NT dollar will remain driven by foreign capital flows in the near term, with stock market moves affecting foreign investor activity, while the central bank's stance is equally key. The U.S. dollar was steady, with the dollar index falling below 102 to around 101.96. The U.S. Federal Reserve held rates steady this week as expected, while signaling that upcoming inflation data will affect future policy direction, with markets currently pricing a 78% chance of a rate hike in December.