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

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

Taipei, June 29 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.056 to close at NT$29.900, as sentiment toward the global economy improved after European Union leaders agreed on a 120 billion euro (US$150 billion) stimulus package to boost the region's economy, dealers said. Buying in most Asian currencies, including the Taiwan dollar and the South Korean won, was also stirred up by an agreement hammered out at the ongoing EU summit to ease repayment rules for emergency loans to Spain's banking system, they said. A strong rebound staged by the local bourse added downward pressure on the greenback throughout the trading session, they said. The U.S. unit opened at the day's high of NT$29.980 and moved to an early low of NT$29.848 before rebounding. Turnover totaled US$784 million during the trading session. Led by a rising euro, the Taiwan dollar extended its momentum against the U.S. dollar soon after the local foreign exchange market opened, the dealers said. The strength of the euro came after the EU summit agreed to mobilize 120 billion euros to stimulate the ailing economy in the region, they said.
The accord to ease the lending terms for Spanish banks, which are seeking funds for recapitalization, made many traders in Asia relieved to some extent, a development that prompted them to buy into currencies in the region, the dealers added. The reduced worries over the debt problems in Europe drove traders to move their funds out of the U.S. dollar and pour money into equity markets as they became upbeat about the world's economic fundamentals, they said. At home, the bourse closed up 1.76 percent at the day's high of 7,296.28 points after investors rushed to pick up bargains after recent consolidation. Net buying of NT$7.03 billion (US$235 million)-worth of local shares by foreign institutional investors also lifted demand for the Taiwan dollar during the session. (By Lin Hui-chun and Frances Huang)


Updated : 2021-05-16 00:47 GMT+08:00