BNY: Taiwan Dollar Undervalued Amid Rotational Flows
BNY's Geoff Yu notes that Taiwan's strong equity performance in 2026 has coincided with net institutional outflows, mainly from U.S. pensions and hedge funds, while APAC and EMEA investors provide inflows, leaving the TWD undervalued.
Geoff Yu at BNY highlighted that Taiwan's equity market strength in 2026 has been accompanied by net institutional outflows, predominantly from U.S. pension funds and hedge funds. On the other side, investors from the Asia-Pacific (APAC) and Europe, Middle East, and Africa (EMEA) regions are providing inward rotational flows.
This dynamic has left the Taiwanese dollar (TWD) undervalued relative to its fundamentals, according to BNY's analysis. The comment comes amid broader discussions of cross-border capital flows and currency valuation in the FX space.
Source: FXStreet Forex News