The Taiwan dollar dropped through the 32 mark early on then quickly rebounded, a relief for the local currency even as Taiwan's stock market opened sharply lower.

• Taiwan stocks fell more than 900 points at the open, and the currency briefly weakened past 32 per US dollar before turning around and closing the morning stronger.
• The US dollar's bounce did not last: US government bond yields eased back from their highs and the dollar index slipped.
• Other Asian currencies rose too, with the Korean won breaking past 1,400 to a new high for this stretch and the Japanese yen holding near 160.
• Weak US economic data has cooled bets that the Fed will raise rates again in September, which is pushing the dollar down.
• Foreign investors turned into net sellers of Taiwan stocks yesterday, and whether that money keeps leaving is now the main swing factor for the currency.

Outlook: Traders are waiting on the Fed's July meeting minutes and news from the stalled US-Iran talks, both of which could set the dollar's next move.