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

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

Taipei, Dec. 30 (CNA) The U.S. dollar closed flat at NT$30.290 against the Taiwan dollar Friday after moving in a narrow range following a decision made by the local central bank to leave its key interest rate unchanged a day earlier, dealers said. With many traders still away from the trading floor due to the upcoming New Year holiday, the local foreign exchange market remained quiet, they said. The greenback opened at NT$30.290 and moved between NT$30.260 and NT$30.310 before the close. Turnover totaled US$668 million during the trading session. Dealers said the decision to keep the interest rates the same in the central bank's quarterly policymaking meeting gave little indication to traders. The central bank has kept its key interest rates unchanged since the end of the third quarter of this year to stop the last interest rate hike cycle as local economic fundamentals have been impacted by the debt problems in the eurozone. Dealers said the absence of many foreign traders also kept the U.S. dollar and Taiwan dollar in ranged trade and left the currency to drift without meaningful direction. A falling euro, which was caused by lingering fears over the European debt crisis, imposed some downward pressure on the Taiwan dollar, while year-end fund demand from exporters to fulfill their financial obligations helped offset the impact from the euro's weakness, they said. The euro fell to a 15-month low against the U.S. dollar overnight after the bond yields in Italy rose after the country sold less than its maximum target in a bond auction, a development which raised concerns over the region's debt crisis. The Taiwan dollar was also supported by NT$4.98 billion (US$164 million) posted by foreign institutional investors in the local bourse, while the benchmark weighted index closed down 0.03 percent at 7,072.08 points after profit taking eroded early gains, dealers said. (By Kao Chao-fen and Frances Huang)


Updated : 2021-08-05 23:42 GMT+08:00