Forex reserves top US$564 billion as assets gain valueFed effect: The fund movements likely had to do with market expectations that the Fed would raise interest rates through September, an official saidBy Crystal Hsu / Staff reporterThe nation’s foreign exchange reserves last month grew US$1.97 billion to a record US$564.83 billion, as its assets denominated in European currencies gained value, the central bank said yesterday. The changes in value came after the US Federal Reserve kept its policy rate unchanged and other advanced countries raised interest rates to tame inflation, Tsai said. Foreign fund flows played a neutral role after remitting US$3.43 billion of capital and wiring over US$3 billion of profit abroad, Tsai said. As of Tuesday, the local currency dropped 1.31 percent against the US dollar, staying within a “stable” range, Tsai said. The fund movements likely had to do with market expectations that the Fed would raise interest rates through September, in a continued bid to fight inflation, Tsai said.
