Taiwan's central bank saw its foreign currency reserves jump in August after two months of declines, a sign of steadier money flows into the island.

• Reserves rose to just over $600 billion, the biggest monthly gain since May last year.
• The main driver was the central bank stepping into the market to buy foreign currency.
• A weaker US dollar and interest earned on the reserves added to the gain, with August a strong month for interest income.
• The Taiwan dollar rose about 2% in August because foreign investors kept more of their dividend money in Taiwan instead of sending it home, and some even brought new money in.
• Swings in the currency market have picked up in the afternoons, tracking a choppier stock market and daily foreign buying data.

Outlook: A strengthening Japanese yen could ripple through Asian currencies, but it is still unclear whether that move is official intervention or traders covering bets.