Powell made a hawk, and the U.S. dollar rose sharply in response, causing non-U.S. currencies to dive and plummet.

(Photo by reporter Chen Meiying)

[Reporter Chen Meiying/Taipei Report] Federal Reserve Chairman Jerome Powell released a hawk, the U.S. dollar index strengthened, and non-U.S. currencies plummeted. The exchange rate of the New Taiwan dollar against the U.S. dollar hit 2.02 cents in the intraday session, and finally closed at 30.79 yuan, a heavy depreciation of 1.96 cents , the exchange rate hit a new low in more than 3 months, with a turnover of 1.502 billion US dollars.

The performance of Taiwan stocks was relatively defensible. The market index finally fell only 39.69 points to close at 15818.2 points. The three major legal entities sold a total of 14.512 billion yuan.

Among them, foreign capital sold more than 16.476 billion yuan.

Please read on...

Foreign capital sold more than foreign capital in the spot market, which is also a rare large-scale remittance in recent years, so that the NT dollar exchange rate was opened at a low price of 30.7 yuan early in the morning. With the continuous influx of US dollar buying, the NT dollar hit a minimum of 30.796 yuan, depreciating by more than 2 cents. Approaching the 30.8 yuan mark.

The head of Huiyin said that the inflow and outflow of foreign capital has not been large recently, so that the price of Taiwan dollar is roughly in the range of 30.3 yuan to 30.6 yuan. After Powell’s speech, the market trend has changed. , the NT$30.8 level should not be easy to hold, and after the 30.8 yuan is broken, the next step is to test the integer price of 31 yuan.

The head of Huiyin believes that the market still needs time to digest Powell’s speech, and before the Federal Open Market Committee (FOMC) meeting, there are two key data on Friday’s non-agricultural employment and next Tuesday’s inflation rate to be released. These two indicators will also affect the direction of the FOMC meeting and must be closely observed.

According to the exchange rate announced by the central bank at 4:30, the U.S. dollar index rose 1.46% today, the Japanese yen fell 1.28%, the Korean won slumped 1.66%, the Singapore dollar depreciated 0.75%, and the Taiwan dollar depreciated 0.64%, which is equivalent to the renminbi.

According to foreign news reports, Powell hinted at the Congressional hearing that interest rates will be extended, and the end-point interest rate may be higher than originally expected. After Powell's speech, the US dollar rose sharply, and non-US currencies plunged one after another.

The interest rate futures market is betting that the probability of the Fed raising interest rates by 2 yards in March has exceeded 70% from less than 30%.

Wall Street has also increased its forecast for the terminal interest rate, including Goldman Sachs' revision to 5.50-5.75%, and BlackRock believes that it may reach 6%, and it will remain at 6% for a longer period of time.

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.

related news