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Taiwan: U.S. dollar closes lower on Taipei forex

Taiwan: U.S. dollar closes lower on Taipei forex

The U.S. dollar fell against the New Taiwan dollar, shedding NT$0.06 to close at NT$30.590.

Turnover totaled US$799 million during the trading session.

The greenback opened at the day's high of NT$30.650 and moved to a low of NT$30.240 before rebounding.

Dealers said the New Taiwan dollar made strong gains in morning trade on continued fund inflows with investors betting on a new round of U.S. quantitative easing leading to more money entering Asian markets and further diluting the value of the U.S. dollar.

The U.S. Federal Reserve Board announced overnight it will pump US$600 billion into the market through purchases of long-term Treasury bonds to shore up the U.S. economy.

Dealers said most currencies in Asia continued their momentum from recent gains to reflect the U.S. fund injection plan, since the scale of bond purchases is larger than the market had generally expected.

Selling of the U.S. dollar on the local market largely came from foreign banks and exporters, they said.

The domestic stock market was also boosted by the further U.S. monetary easing policy, adding downward pressure on the greenback, dealers said.

The weighted index closed up 0.77 percent at 8,357.85 today.

Increased strength of the New Taiwan dollar was limited, however, by continued intervention of Taiwan's central bank in late trade in a bid to prevent the local currency from rising too rapidly amid fears that the island's exports will be hurt, dealers said.

They said the central bank's efforts again maintained the value of the U.S. dollar above NT$30.50, while the market suspected the level was the near-term bottom line acceptable to the bank.

Updated : 2021-06-24 09:22 GMT+08:00