The Taipei foreign exchange market is about to close today (19) in the Year of the Tiger. As the Bank of Japan decided to hold monetary policy on Wednesday and keep the yield curve control policy unchanged, the yen fell sharply after hearing the news. In addition, Fed officials released hawks, which led to a strengthening of the U.S. dollar. The exchange rate of the New Taiwan dollar weakened in early trading, reaching as low as 30.38 yuan, a depreciation of 4.7 cents. However, because the stock market has been closed and the trading volume can be weak, the market estimates that the total depreciation of the New Taiwan dollar is about 8-9% in the Year of the Tiger.
The Bank of Japan kept its policy rate at minus 0.1%, and the 10-year government bond yield was unchanged at 0%. The Bank of Japan further stated that it will continue to purchase bonds on a large scale to defend the current policy of controlling the yield curve. The yen once fell below the 130 mark against the dollar, but the depreciation gradually converged. In addition, hawkish comments from Fed officials on Wednesday dampened market expectations that the central bank is about to end its tightening policy.
The exchange rate of the New Taiwan dollar against the U.S. dollar has depreciated twice in a row, and the overall foreign exchange market trading was sluggish. It closed at 30.333 yuan yesterday.
Looking at the performance of major Asian currencies against the US dollar today, the RMB depreciated by 0.59% in early trading, the Thai baht depreciated by 0.3%, the Singapore dollar depreciated by 0.26%, the Korean won depreciated by 0.2%, the New Taiwan dollar also depreciated by 0.13%, and the Japanese yen appreciated by 0.28%.
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