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

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

Taipei, June 28 (CNA) The U.S. dollar fell against the Taiwan dollar Thursday, shedding NT$0.004 to close at NT$29.956 as traders moved their funds out of the greenback as a safe haven, betting on a recovery in the global economy, dealers said. A recovering euro also encouraged traders to buy into the Taiwan dollar and cut their U.S. dollar holdings on expectations that the upcoming summit of the European Union will devise measures to alleviate the debt problems in the eurozone, they said. However, the losses incurred by the U.S. dollar were capped by intervention of the local central bank to slow down appreciation of the local currency in a bid to boost Taiwan's global competitiveness, dealers added. The U.S. unit opened at the day's high of NT$29.960 and moved to a low of NT$29.820 before rebounding. Turnover totaled US$605 million during the trading session. Confidence in the world's economic fundamentals was lifted by the improving durable goods orders and home sales data released by the U.S. overnight, dealers said. Buying interest in most of the currencies in Asia, including the Taiwan dollar and the South Korean won, increased soon after the foreign exchange markets in the region opened amid such optimism, dealers added. At home, foreign banks and local exporters rushed to sell the U.S. dollar for the Taiwan dollar, taking advantage of the uptrend among the regional currencies, before the local central bank's intervention helped the greenback recover some of its early losses, dealers said. The gains posted by most of the regional currencies also reflected the strength of the euro, which was boosted by hopes that the two-day EU summit will come up with fiscal stimulus measures to boost the fragile European economy, dealers said. In addition, traders are hoping that the EU meeting will iron out measures to fix the region's ailing banking system and thus prevent a contagion effect in the global market, dealers said. (By Eva Feng and Frances Huang)


Updated : 2021-01-18 05:50 GMT+08:00