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U.S. dollar closes higher in Taipei forex (update)

U.S. dollar closes higher in Taipei forex (update)

Taipei, March 3 (CNA) The U.S. dollar rose against the Taiwan dollar Saturday, gaining NT$0.003 to close at NT$29.464 after the local central bank stepped in again to buy into the greenback, helping the unit reverse its early losses, dealers said. However, turnover shrank a lot as many foreign traders were away from the trading floor for the weekend, they said. The local foreign exchange market opened Saturday to make up the reduced number of the trading sessions for the just concluded long holiday weekend. The U.S. dollar opened at NT$29.465 and moved between NT$29.403 and NT$29.479 before the close. Turnover totaled US$178 million during the trading session. Dealers said the local market appeared very quiet in thin trade in the day when its counterparts in the region were closed for holiday. The reduced trading volume made it much easier for the local central bank to intervene to slow down the pace of the Taiwan dollar's appreciation in a bid to protect Taiwan's global competitiveness, they said. In late trade, the central bank scaled up its buying and boosted the value of the greenback, prompting the currency to return to the positive territory by the end of the session, they added. During most of the trading session, exporters and importers continued cutting their holdings in the U.S. dollar, although their trading volume was limited as there was a lack of a clear indication from the movements of other currencies, dealers said. Interest in holding the currencies in the region remained high on expectations of an improving global economy after recent better-than-expected manufacturing activity data in the U.S., Europe and Asia, they said. However, sentiment has turned cautious to some extent toward the debt crisis in the eurozone after the euro lost momentum against the U.S. dollar overnight, although the European Central Bank has extended massive relief loans to the banks in the region to take on the debt problems, dealers said. They said many investors remained wary of the European financial crisis, believing the crisis was far from over. (By Kao Caho-fen and Frances Huang)


Updated : 2020-12-03 19:34 GMT+08:00