Taiwan Dollar Falls to 32.617 as Foreign Investors Sell NT$838 Billion in 10 Sessions

Ten Days of Selling Hit Taiwan's Stocks and Currency

The Taiwan dollar closed at NT$32.617 against the U.S. dollar on October 20, 2026, its weakest finish since April 14, 2025, as foreign investors extended their selling of Taiwanese shares to a tenth consecutive trading session. Their net sales reached NT$79.54 billion for the day and NT$838 billion over the ten sessions.

The currency weakened by NT$0.172 from the previous close, recording its fourth consecutive daily decline. It passed through NT$32.5 and NT$32.6 per U.S. dollar during trading and briefly reached NT$32.672 before recovering some ground.

Taiwan's benchmark Taiex stock index fell 529.15 points to 46,292.93, a decline of about 1.13%. The index swung through a range of 804 points and was down as much as 659 points after selling gathered pace in the afternoon.

A recovery in American technology shares on October 19 offered little relief. Investors remained concerned about the money needed to finance artificial intelligence investment, the returns that spending will produce, and the direction of U.S. interest rates. Foreign investors selling Taiwanese shares also sought dollars to move money abroad, adding pressure to the local currency.

How the Dollar Passed Two Thresholds

The U.S. dollar opened at NT$32.480, also its lowest quotation of the session, before climbing to NT$32.672. Because the exchange rate measures how many Taiwan dollars are needed to buy one U.S. dollar, a rising number means Taiwan's currency is losing value.

The previous closing quotation was NT$32.445. The move to NT$32.617 therefore represented an increase of about 0.53% in the Taiwan dollar price of a U.S. dollar. At the day's weakest point, that price was roughly 0.70% above the previous close.

The central bank continued intervening to moderate the movement, according to currency dealers. Its unusually timed public comments during trading on October 19 had already signaled concern about the pressure. Dollar selling by exporters later helped the Taiwan dollar finish stronger than its weakest level.

A Week of Pressure Builds on Earlier Losses

Taiwan's currency had already fallen through NT$32 during the October 13 selloff, when foreign investors sold a net NT$165.342 billion in Taiwanese shares. The exchange rate closed that day at NT$32.085, while the Taiex finished at 48,341.31.

By October 20, the dollar quotation had risen another NT$0.532, or about 1.66%, from that October 13 close. Over the same period, the Taiex lost 2,048.38 points, about 4.24%. The comparison shows how pressure on shares and the currency continued beyond the earlier sharp decline.

• October 13: The Taiwan dollar closed at NT$32.085 per U.S. dollar, and the Taiex fell 960.65 points.
• October 15: Foreign investors sold a record NT$302.5 billion in Taiwanese shares, while combined currency trading reached US$9.115 billion.
• October 19: Major U.S. stock indexes rose, and the Philadelphia Semiconductor Index ended eight consecutive sessions of losses.
• October 20: Foreign selling continued in Taiwan, taking the currency to NT$32.617 and the Taiex to 46,292.93.
• October 21: Taiwan stock index futures were scheduled to settle, making subsequent foreign positioning a focus for traders.

The Taiwan dollar had weakened by NT$0.765 per U.S. dollar since the start of October. Currency dealers described it as the weakest Asian currency over that period, with the pace of foreign selling dominating local trading.

Domestic Funds Buy While Foreign Investors Sell

Foreign investors and investors from mainland China together sold a net NT$79.54 billion in shares on October 20. Securities dealers sold another NT$35.579 billion, while investment trust funds bought a net NT$18.315 billion. Together, the three institutional groups recorded net sales of NT$96.804 billion.

Investment trusts, which manage pooled investment funds, were moving in the opposite direction from foreign investors. They had bought shares for eight consecutive sessions, adding a net NT$133.6 billion over that period. Their purchases for the year had reached about NT$880 billion.

Foreign investors had sold a net NT$741.6 billion in Taiwan's main listed share market during October and more than NT$2.11 trillion since the start of the year. The ten consecutive sessions of selling totaled NT$838 billion, a period that began before October.

Domestic buying softened the institutional selling balance but could not absorb the combined sales by foreign investors and securities dealers. For investors watching the market, the result was a clear division: local fund managers continued adding shares while foreign investors reduced their exposure.

TSMC and Funds Bear Much of the Selling

Taiwan Semiconductor Manufacturing Co. remained a persistent target. Foreign investors sold a net 9,365 trading lots of TSMC shares on October 20, extending their selling to ten consecutive sessions. The cumulative total reached 132,300 lots.

A standard Taiwan share trading lot contains 1,000 shares. Those figures therefore represent 9.365 million TSMC shares sold on the day and 132.3 million over the ten sessions. Selling in such a large semiconductor company matters for both the benchmark index and confidence in Taiwan's technology sector.

Foreign investors also reduced holdings in exchange traded funds, or ETFs, which let investors buy a basket of securities through a single listed product. They sold more than 130,700 lots of the active fund trading under code 00406A and 49,000 lots of the Yuanta Taiwan 50 ETF, code 0050. AUO recorded net foreign sales of 31,600 lots.

Buying continued in selected companies. Only six stocks attracted net foreign purchases above 10,000 lots: Wistron, Taiwan Glass, Compal Electronics, China Steel, Formosa Petrochemical and Acer. The concentration of buying in a small group contrasted with the broader reductions across major shares and funds.

Currency Trading Surges as Money Changes Hands

Combined turnover at the Taipei and Yuanta foreign exchange markets was put at US$4.2765 billion on October 20, described as the tenth largest daily total on record. Taipei accounted for US$3.277 billion and Yuanta for US$999.5 million. Other published totals for the combined session were US$4.232 billion and US$4.272 billion.

The market had traded more than US$40 billion over ten sessions, equivalent to more than NT$1.3 trillion. Those figures measure the amount of currency bought and sold. Actual money transferred out of Taiwan is a separate total, which was not given.

October 15 set a much larger benchmark. Combined foreign exchange turnover reached US$9.115 billion, more than twice the October 20 total, on the day foreign share sales reached NT$302.5 billion. October 13 turnover was put at US$7.1145 billion. Seven of Taiwan's ten largest daily currency trading totals had occurred during 2026.

The rising value of Taiwan's stock market helps explain the scale of these currency transactions. The Taiex had crossed 30,000 and 40,000 during the year and approached 50,000 before retreating. Buying or selling the same number of shares at higher prices requires more money, increasing the potential size of related currency trades.

Why Exporters Waited Before Selling Dollars

Foreign investors converting proceeds from share sales into U.S. dollars created strong demand for the American currency. Currency dealers said further buying emerged after the stock market closed, when investors worked out the amounts they needed to transfer abroad.

Exporters faced a different choice. Businesses paid in U.S. dollars can sell those dollars for Taiwan dollars to meet local expenses. A weaker Taiwan dollar gives them more local currency for each dollar of export revenue, which can encourage them to wait when they expect the exchange rate to move further.

Dealers said exporters initially held back from selling dollars as Taiwan's currency weakened. More supply appeared when the quotation reached around NT$32.650 in the afternoon. That selling, together with central bank intervention, helped pull the closing quotation back from NT$32.672.

The exchange rate creates different pressures for businesses on either side of a transaction. Exporters converting dollar income receive more Taiwan dollars, while importers paying bills in U.S. dollars need more local currency. Companies with both dollar income and dollar expenses face a balance between the two.

AI Spending and U.S. Rates Shape Expectations

Huang Wen-ching, chief strategist at Taishin Investment Advisory, attributed much of the recent foreign selling to uncertainty over U.S. interest rates. He said market expectations pointed to a low probability of a Federal Reserve rate increase in October, but a greater chance in December.

Higher U.S. rates can make dollar assets more attractive and raise financing costs. For technology companies spending heavily on artificial intelligence, investors are also watching how quickly those investments generate revenue and profits. Large technology companies' earnings and business forecasts were therefore becoming the next tests of confidence.

Huang remained more positive about the longer term. He viewed the AI industry's underlying business conditions as healthy and pointed to continued purchases by domestic investment trusts as support for Taiwanese shares. His assessment contrasted with the caution visible in foreign investors' daily transactions.

High international oil prices were another concern because energy costs affect businesses and inflation expectations. Taiwan's market was responding to several connected pressures at once: the cost of capital, the cost of energy and uncertainty about the earnings needed to justify technology investment.

What Traders Are Watching Next

The October 21 settlement of Taiwan stock index futures was the nearest scheduled market event. Futures are contracts tied to the value of an index. Around settlement, investors may close positions or move them into contracts with later settlement dates, changing the pattern of trading.

Foreign investors reduced their net short position in Taiwan index futures by 1,397 contracts to 89,748 on October 20. A net short position means contracts positioned for a decline exceed those positioned for a rise. Across the three major institutional groups, the net short position fell by 1,557 contracts to 2,659.

Currency specialist Li Chi-chan said the Taiwan dollar could shift into a range of NT$32.5 to NT$33 per U.S. dollar while seeking support. Other currency dealers identified NT$32.8 as a level the market might test if foreign selling and demand for dollars continued.

Li also described a possible period of uneven trading if buyers entered after new currency lows. The direction of foreign transfers, movements in the international dollar and upcoming technology earnings would help determine whether pressure eased. His projected range was a market assessment, while the next concrete test was how investors traded after futures settlement.

Key Points

• The Taiwan dollar closed at NT$32.617 per U.S. dollar on October 20, its weakest finish since April 14, 2025.
• Foreign investors sold NT$79.54 billion in shares that day, taking ten consecutive sessions of net selling to NT$838 billion.
• The Taiex fell 529.15 points to 46,292.93 despite a recovery in U.S. stocks the previous day.
• Domestic investment trusts continued buying, adding NT$133.6 billion over eight consecutive sessions.
• Combined currency turnover was put at US$4.2765 billion, with other published totals slightly lower.
• October 21 futures settlement, technology earnings and U.S. interest rate expectations were the next trading focuses.