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Despite a modest return of stability to......>

TAIWAN: Despite a modest return of stability to Chinese FX markets Monday, TWD
didn't follow suit, with USD/TWD closing at the highest level since January 23rd
2017. The moves follow exchange data showing foreign capital continues to be
withdrawn from domestic equities, with foreign funds being a net seller of
Taiwanese stocks for a ninth consecutive session - the longest streak of the
year so far. The move's done little to redress the balance in TWD/KRW, however,
with the cross still sitting well within range of recent cycle highs of 38.2906
(highest since mid-2013).
-TWD's persistent weakness prompted USD/TWD to hit the highest level since early
2017 Monday, with markets already hedging for further weakness. Close to $2.50
have been bought in USD/TWD call options for every $1 in puts so far today. Call
strikes at 31.90 and 32.10 have been particularly popular, levels that spot
hasn't traded at since the early months of 2017.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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