The Taiwan dollar extended its appreciation against the US dollar in early trading on the 27th, breaking through NT$31.8 and reaching an intraday high of NT$31.74, up 7.8 cents and at a recent multi-week high. The move came as Taiwan equities advanced and major Asian currencies strengthened together. The US Personal Consumption Expenditures (PCE) Price Index rose 0.2% month-over-month, slightly above expectations, while core PCE also increased 0.2%, matching forecasts. Consumption showed signs of cooling, and the US Dollar Index retreated from 99.23 to consolidate around 99.11. Traders attributed the Taiwan dollar's momentum mainly to the dollar's correction and capital inflows linked to the strong performance of Taiwan stocks. Senior foreign exchange bankers said the currency's ability to hold above NT$31.7 will depend on foreign-investor flows and the Taiwan stock market. Continued equity strength and quarter-end US dollar selling by exporters could give the currency room to strengthen further, although a technical rebound in the Dollar Index could pressure Asian currencies.