Taiwan Dollar: Flow-driven weakness with policy support – OCBC
The post Taiwan Dollar: Flow-driven weakness with policy support – OCBC appeared on BitcoinEthereumNews.com. OCBC Bank’s Sim Moh Siong and Christopher Wong note that Taiwan Dollar (TWD) remains on the back foot, with USD/TWD above 32, driven mainly by foreign equity selling and dividend/remittance-related US Dollar (USD) demand rather than weaker fundamentals. Authorities are encouraging quicker execution of large USD sell orders to mobilise natural supply, while exporter USD selling and CBC guidance may reduce the risk of a disorderly move higher in USD/TWD. Vulnerable on flows but disorderly spike risk tempered “TWD has stayed on the back foot, with USD/TWD breaking above the 32 handle. The move looks largely flow-driven rather than a deterioration in domestic fundamentals. Foreign equity selling has weighed on Taiwan equities and added to USD demand, while dividend/profit remittance flows also added to seasonality demand for USD.” “CBC officials have framed recent FX weakness as lar