May Sees $240 Billion Influx from Foreign Investors, TWD's Rise Fuels Dual Profits
With the current weakness of the US dollar, the New Taiwan Dollar (TWD) is on an appreciation trend. However, the Central Bank is not allowing a violent rise in the TWD but is instead monitoring the appreciation of other Asian currencies, aiming for a slow transition toward the 20s.
In May, as the TWD sharply appreciated, foreign investors, detecting the rare arbitrage opportunity from the weakening dollar and rising TWD, flooded into Taiwan, driving a wave of capital into the stock market.
Despite the turbulence in Taiwan's stock market ahead of the Dragon Boat Festival, foreign funds still maintained over $240 billion parked in the stock market, ready for a strategy of dual profits through stock trading and currency exchange.
