Taiwan Dollar: Equity inflows support TWD againt US Dollar – OCBC

OCBC strategists Sim Moh Siong and Christopher Wong highlight that the Taiwan Dollar (TWD) has extended gains, briefly strengthening near 31.71 versus the US Dollar (USD), supported by strong foreign portfolio inflows and domestic equity outperformance tied to tech and AI themes. While these flows could translate into firmer TWD demand, resident outflows and potential smoothing are expected to temper the pace of appreciation.

Foreign buying and tech cycle aid TWD

"TWD extended its gains on Monday, briefly strengthening to near 31.71 (vs USD) before gains were partially pared. The move was supported by continued foreign portfolio inflows alongside gains in domestic equities."

"Foreign investors were net buyers of around USD372mn of Taiwan equities, extending the recent run of inflows following particularly strong buying late last week."

"The persistence of foreign buying is worth keeping a close watch. If renewed interest in the tech/AI theme continues to draw portfolio inflows, Taiwan’s strong export cycle may translate more visibly into TWD support."

"That said, resident outflows and potential smoothing should continue to temper the pace of TWD appreciation."

"Bullish momentum on daily chart intact but shows signs of waning while RSI turned lower. Some consolidation not ruled out. Support at 31.70/71 levels (21, 200 DMAs, 61.8% fibo retracement of 2026 low to high). Resistance at 31.83/86 levels (100 DMA, 50% fibo)."

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