Taiwan's currency and stock market both climbed, a positive sign for foreign money flowing back into Taiwan, though a stronger US dollar could cap the gains.

• The Taiwan dollar briefly pushed past 31.6 per US dollar in morning trade as chip-linked heavyweights like MediaTek lifted the local stock market.
• The currency has bounced back hard in August after being Asia's weakest in July, helped by foreign investors bringing money back in.
• Asian currencies are moving in different directions: the Korean won keeps hitting new highs, while the yen is sliding toward 160 and traders watch for Japan to step in.
• Fed chair Warsh sounded hawkish at last week's central bank gathering, pushing up bets on a rate hike and strengthening the dollar.
• Taiwan's AI export boom is still the main support under the currency.

Outlook: The Taiwan dollar is expected to trade between 31.5 and 32, with upcoming US inflation and jobs data and foreign buying of Taiwan stocks deciding whether it holds.