The New Taiwan Dollar exhibited strong performance on the 12th, closing at 29.66 Taiwan dollars against 1 US dollar, appreciating by 2.6 cents in a single day. This marks the second consecutive trading day of gains and reaches a new high since June 2022. Traders in the Taipei foreign exchange market noted that as US inflation continues to ease, the market anticipates that the Federal Reserve (Fed) may initiate interest rate cuts earlier, leading to a significant drop of 0.78% in the US dollar index on that day, which in turn strengthened non-US currencies, causing the New Taiwan Dollar to rise sharply.

On that day, the trading volume in the Taipei foreign exchange market reached 1.336 billion US dollars. During trading, the New Taiwan Dollar briefly reached 29.65 Taiwan dollars, with a lowest point of 29.725 Taiwan dollars, resulting in a total fluctuation range of 7.5 points for the day. A senior foreign exchange trader analyzed that the current market sentiment is cautious, primarily waiting for the Federal Reserve's June meeting results, combined with US inflation data performing better than expected, which has raised the market's expectations for possible premature rate cuts by the Fed, putting pressure on the dollar index.

It is noteworthy that the recent appreciation of the New Taiwan Dollar is mainly driven by the weakening of the US dollar. Market traders have observed that the ongoing inflow of exporters and foreign investments, coupled with the weakening dollar index, contributes to the strong performance of the New Taiwan Dollar. However, the Central Bank continues to maintain market order to prevent excessive fluctuations in the exchange rate. Traders indicate that the market will closely monitor the Federal Reserve's June interest rate decision meeting and Chairman Powell's key remarks, which will influence the future direction of the dollar and the performance of the global currency market.