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

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

Taipei, Jan. 9 (CNA) The U.S. dollar extended losses against the Taiwan dollar Monday as demand for the local currency remained strong ahead of the Lunar New Year holiday, dealers said. The strength of the Taiwan dollar bucked the downward trend of most other currencies in Asia, which followed a falling euro amid lingering concerns over the debt crisis in Europe, they said. The greenback opened at the day's high of NT$30.300 and moved to a low of NT$30.190 before rebounding. Turnover totaled US$543 million during the trading session. Dealers said demand for the Taiwan dollar was fueled by exporters who needed funds to fulfill their annual financial obligations, including the provision of year-end bonuses to their employees. In addition, foreign banks were buying Taiwan dollars as they were commissioned by foreign institutional investors who raised their holdings in the local bourse. Foreign institutional investors bought a net worth of NT$382 million (US$12.65 million) in the local stock market, while the benchmark weighted index was down 0.38 percent to 7,093.04 points. However, turnover remained thin as many traders stayed on the sidelines as the euro's weakness still dampened market sentiment toward the debt situation in the eurozone, the dealers said. The euro fell to a record low since September 2010 against the U.S. dollar overnight after borrowing costs in debt-ridden countries, including Italy and Spain, rose as investors were reluctant to pour additional funds into them. Traders were also watching closely to see what measures German Chancellor Angela Merkel and French President Nicolas Sarkozy would come up with in a meeting scheduled for later in the day to address the financial crisis. (By Kao Chao-fen and Frances Huang)


Updated : 2021-03-07 20:23 GMT+08:00