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U.S. dollar closes lower on Taipei forex (update)

U.S. dollar closes lower on Taipei forex (update)

Taipei, Dec. 29 (CNA) The U.S. dollar fell against the Taiwan dollar Thursday, shedding NT$0.02 to close at NT$30.290 as turnover remained thin amid cautious sentiment ahead of a quarterly policy announcement by the local central bank later in the day, dealers said. The low trading volume was also attributed to the absence of foreign traders who were away from the trading floor because of the upcoming New Year holiday, dealers said. In addition, concerns over the debt crisis in Europe kept many traders away amid fears that the euro would continue its downward trend, dealers said. The European Central Bank reported a jump in its balance sheet after it extended large loans to the debt-ridden countries in the region. The greenback opened at NT$30.350 and moved between NT$30.200 and NT$30.499 before the close. Turnover totaled US$535 million during the trading session. Dealers said many traders were staying on the sidelines before the local central bank's announcement. Traders were watching closely whether the central bank would lower its key interest rates as the local economy was showing signs of slowing, they said. The Taiwan dollar extended its momentum right after the local foreign exchange market opened, with traders taking cues from the strength of the South Korean won amid fears that the financial crisis in Europe would escalate, dealers said. Since the ECB reported that its balance sheet had expanded to a record 2.73 trillion euros (NT$109.2 trillion), there have been doubts that it will be capable of pumping additional massive funds into the market, dealers said. A mild technical rebound by the local bourse also boosted demand for the Taiwan dollar as foreign institutional investors picked up stocks in the market, dealers said. The benchmark weighted index closed up 0.25 percent at 7,074.82 points, with foreign institutional investors posting a net buy of NT$4.58 billion (US$151 million). (By Eva Feng and Frances Huang)


Updated : 2021-01-16 01:38 GMT+08:00