Taiwan's Forex Reserves Rebound to $600 Billion Mark

Taiwan's foreign exchange reserves rose to $601.90 billion at the end of August, rebounding from a two-month drop and surpassing the $600 billion mark for the first time in over a year.

The central bank intervened in the forex market by buying US dollars and selling Taiwan dollars to stabilize the American currency, which was falling against the Taiwan dollar due to foreign institutional investors pulling out funds in July after receiving cash dividends.

However, in August, these investors registered a net inflow of about $1.2 billion into the local equity market, boosting the Taiwan dollar and contributing to the increase in forex reserves.

The central bank's intervention helped moderate the greenback's losses, and analysts said that without it, the US dollar could have seen a steeper decline.