Foreign exchange traders expect the central bank to allow the New Taiwan Dollar to reflect international market trends, suggesting continued gradual appreciation is likely. With the U.S. stock indices closing in the green, Taiwan’s stock market rose on the 17th, further boosting the New Taiwan Dollar. Despite a rebound in the U.S. dollar index, the New Taiwan Dollar opened above 29.5, reaching a peak of 29.46 during the session, setting a new wave high. However, as the yen and other major Asian currencies depreciated, the central bank does not want the New Taiwan Dollar to be too strong individually, prompting active adjustment at the end of trading, resulting in the lowest daily close.

This week is known as Super Central Bank Week, with the Bank of Japan leading the discussion by announcing its monetary policy decision on the 17th. The Bank of Japan announced that the short-term interest rate remains unchanged at 0.5%, in line with expectations, marking the third consecutive freeze. They plan to slow the pace of bond purchasing starting from April next year, reducing market volatility.

Bank of Japan Governor Kazuo Ueda stated at a press conference that uncertainties in U.S. trade policy have deepened the downside risks for Japan’s economic outlook and inflation. Additionally, trade variables could affect corporate winter bonuses and next year's spring wage negotiations. He emphasized the need to await further data to determine the next interest rate hike schedule.

After the latest decision announcement, the yen experienced fluctuations, dropping below 145 but later rising by 0.1% to 144.67 per dollar. The Taiwan Bank listed the yen cash selling price at 0.207 during the session, reaching the lowest level since July 2004.

As of the end of trading on the 17th, the New Taiwan Dollar closed at 29.535, depreciating by 1.5 cents, with the market awaiting key central bank meetings and total turnover shrinking to $1.605 billion. On the same day, the major Asian currencies saw the Philippine peso and Thai baht depreciating by 0.25%, the weakest performers, while the yen fell by 0.24% and the New Taiwan Dollar declined by 0.05%. Foreign exchange traders believe that with the New Taiwan Dollar hovering around the 29.5 mark, it is likely to fluctuate before challenging the 29.2 threshold.