• CBC Intervention: The Central Bank of the Republic of China (CBC) stepped in to support the Taiwan Dollar (TWD) amid substantial foreign equity outflows.

  • FX Reserve Drawdown: Foreign exchange reserves dipped to $596.4B as the CBC used USD swap market proceeds to acquire US Treasuries and limit further reserve drawdowns.

  • Inflation Concerns: October CPI slowed to 2.33% YoY, remaining above the CBC’s 2% alert threshold, while the Producer Price Index (PPI) jumped 19.7%, signaling ongoing cost-push pressures.

  • Commerzbank Outlook: Near-term pressure persists on USD/TWD near annual highs (~32.60), driven by net foreign equity selling, though elevated inflation keeps potential central bank rate hikes on the table.