US Dollar Falls Below NT$32 Against Taiwan Currency

The Taiwan dollar has strengthened against its US counterpart, becoming the strongest currency in Asia after the US dollar dipped below NT$32 for the first time this month.

The greenback closed down NT$0.194, or 0.61 percent, at NT$31.852 on Monday, marking a new low since July 3 when it ended at NT$31.930.

Dealers attributed the decline in the US dollar to weaker-than-expected US retail sales for July, which fell 0.6 percent and reduced expectations of a Federal Reserve rate hike in September.

The drop also follows last week's release of lower-than-anticipated US inflation data for July.

Despite the Taiex benchmark index losing most of its gains to close only 0.10 percent higher on Monday, foreign institutional investors remained net buyers, purchasing a net NT$45.45 billion worth of shares and further strengthening the Taiwan dollar.