Today, the Taiwan stock market surged alongside a strong rise in the New Taiwan Dollar. What forces are driving this rare dual strength in currency and stocks? (Background: Will electricity prices rise? Taiwan Power Company reveals three scenarios; Minister of Economic Affairs Wang Mei-hua: Striving for a NT$100 billion subsidy from the Legislative Yuan, restarting nuclear power requires consensus from all.) (Additional background: Trump supports 'nuclear energy development AI'; what impact might this have on Bitcoin mining?) After a day of closure, the Taiwan stock market today (the 2nd) was buoyed by impressive earnings reports from U.S. tech stocks, with TSMC rising by NT$42. The weighted index closed up 552.61 points, a gain of 2.73%, approaching 20,800 points. At the same time, the exchange rate of the New Taiwan Dollar against the U.S. Dollar experienced a rare sharp increase, once appreciating by more than NT$1.2 during the day, reaching a new high since January 2024. Although the central bank later intervened, it is still seen at the early 30s, with one U.S. dollar exchanging for NT$30.84 before the deadline. The driving force: Capital and international momentum. The simultaneous strength of the Taiwan stock market and the New Taiwan Dollar is primarily driven by capital inflow. A large influx of foreign capital into the Taiwan stock market not only pushes up stock prices but also directly boosts the exchange rate as foreign investors increase their purchases of New Taiwan Dollars. The strong performance of the U.S. stock market, especially the impressive earnings reports from tech giants, has attracted capital to Taiwan as a vital part of the global tech supply chain. On the other hand, recent U.S. economic data has been worse than expected, and the market's heightened expectations for potential interest rate cuts by the Federal Reserve have diminished the appeal of the U.S. dollar as a safe haven, leading to a relative weakening of the dollar. We know that the rapid appreciation of the New Taiwan Dollar will increase exchange rate pressure on export-oriented companies, potentially leading to losses due to exchange rate fluctuations. Additionally, for Taiwanese cryptocurrency investors, converting stablecoins like USDT back to New Taiwan Dollars has also been affected. According to data from MAX Exchange, the current USDT/TWD trading pair reports NT$31.31, which is a full 4.5% lower compared to last week's peak. Of course, this may just be a short-term fluctuation, and not everyone has a need to exchange back to New Taiwan Dollars, but it reminds you to consider if you have significant withdrawals in the near future. Related reports: Has the myth of Bitcoin security been shattered? Researchers: '$10 billion + 10GW power' can launch a 51% attack; large institutions can easily short to profit. Europe's largest electricity company ENEL will 'tokenize solar panels' allowing currency to offset electricity bills. RWA new application 'Taiwan stock market surges; New Taiwan Dollar skyrockets to NT$30.8, a new 16-month high! Converting stablecoins back to fiat money has decreased...'. This article was first published on BlockTempo (the most influential blockchain news media).

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