Taipei: The U.S. dollar experienced a significant rise against the Taiwan dollar on Monday, surpassing the NT$32.4 mark, driven by substantial fund outflows, according to dealers.

According to Focus Taiwan, the greenback rose NT$0.146 against the Taiwan dollar, closing at NT$32.438, after reaching an intraday high of NT$32.490. The combined turnover on the Taiwan Foreign Exchange and the Cosmos Foreign Exchange amounted to US$3.92 billion.

Dealers noted that the U.S. dollar initially weakened against the Taiwan dollar, influenced by a decline in the U.S. dollar index, which measures the dollar against six major trading partners' currencies. However, the currency rebounded after hitting the day's low, as foreign institutional investors moved large sums of money out of Taiwan.

Despite the Taiex, Taiwan Stock Exchange's benchmark index, extending its gains from the previous session with a rise of 266.66 points to close at 43,386.41 on Monday, foreign institutional investors were net sellers, recording net sales of NT$19.19 billion in shares.

Dealers mentioned that many Taiwanese exporters took advantage of the weaker Taiwan dollar to sell U.S. dollars, which helped to limit the local currency's losses. Additionally, Taiwan's central bank intervened in the late trading session to stabilize volatility in the Taiwan dollar.

While the United States and Japan confirmed their joint efforts to boost the Japanese yen by weakening the U.S. dollar, the Taiwan dollar remained weak on Monday. Dealers suggested that foreign institutional investors might continue to move funds out of Taiwan, including cash dividend payments, potentially allowing the U.S. dollar to challenge the NT$32.6 level in the short term.