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

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

Taipei, May 9 (CNA) The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.03 to close at NT$29.400 after the local central bank intervened late in the session to reverse early losses posted by the greenback, dealers said. The U.S. dollar moved in a narrow range throughout the trading session because of rising concerns that Greece's political deadlock following parliamentary elections over the weekend could rekindle Europe's debt crisis, they said. The U.S. dollar opened at NT$29.400 and moved between NT$29.325 and NT$29.410 before the close. Turnover totaled US$652 million during the trading session. Dealers said the central bank simply seized the gains of the U.S. dollar against the euro and other currencies in the region as an opportunity to push down the Taiwan dollar by the end of the session. The euro fell against the greenback for the eighth consecutive session overnight as concerns grew that Greece might insist on renegotiating bailout agreements if leftist parties there form a coalition government. Greek leftist leader Alexis Tsipras laid out radical measures, including a possible cancellation of international loan agreements, that he would carry out if he becomes the country's prime minister. Greece's leftists are moving to form a government after the country's main center-right party failed to form a coalition government after the parliamentary polls. Most of the currencies in the region, led by the South Korean won, fell against the U.S. dollar, helping reduce some of the pressure on the Taiwan dollar to appreciate against the greenback, dealers said. They said that with many traders staying on the sidelines, turnover remained thin, leaving Taiwan's central bank with plenty of ammunition for its late-session intervention to curb the local currency's appreciation and keep the country's exporters competitive. Before the political tensions ease in Greece, the U.S dollar is expected to continue to move in a narrow range in coming sessions, they added. (By Kao Chao-fen and Frances Huang)


Updated : 2021-10-16 17:51 GMT+08:00