Fed unveils plan to raise interest rate and shrink balance sheet, Asian currency dives close to the 27.8 yuan level | Anue Juheng

U.S. bond yields rallied after the U.S. Federal Reserve’s rate-setting meeting suggested a rate hike in March and a start to shrink its balance sheet later this year.DollarIt also rose to the high point of the five-week cake, and the exchange rate of the New Taiwan dollar depreciated today (27), with a minimum of 27.79 yuan, approaching the 27.8 yuan level.

Taiwan stocks are closed for 11 days into the Spring Festival, the Taipei foreign exchange market is still open, and the New Taiwan dollar is againstDollarThe exchange rate closed with a depreciation of 27.745 yuan yesterday, hitting a new low in more than 1 month.DollarWith the emergence of buying orders, the exchange rate continued to depreciate by 4.5 cents, dropping to 27.79 yuan.

Fed Chairman Powell said that inflation is still well above the central bank’s target, and members of the Federal Open Market Committee (FOMC) “intend” to raise interest rates in March. “Start after the interest rate range”, indicating that this time the balance sheet shrinkage will come earlier than the last time.

After the Fed’s interest rate decision was released, international funds actively returnedDollar, making Asian currencies generally depreciate,wonIt fell 0.45% in early trading today,RMBIt also depreciated by 0.36%, and the New Taiwan dollar and Singapore dollar both depreciated by 0.15%.Thai Bahtdepreciated by 0.06%,Japanese Yenthen appreciates by 0.1%,DollarThe index rose 0.63% in early Asian trade.

The recent exchange rate trend of the New Taiwan Dollar. (Picture: Juheng.com)


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