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

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

Taipei, Oct. 30 (CNA) The U.S. dollar fell against the Taiwan dollar Tuesday, shedding NT$0.014 to close at NT$29.278 as a rebound staged by the local bourse boosted demand for the local currency, dealers said. Meanwhile, the strength of other regional currencies, in particular the South Korean won, and rising consumer spending in the United States added downward pressure on the greenback throughout the trading session, they said. The losses suffered by the U.S. dollar were limited, however, by the intervention of Taiwan's central bank, which slowed the pace of the local currency's appreciation, they added. The U.S. unit opened at NT$29.300, and moved between NT$29.220 and NT$29.319 before the close. Turnover totaled US$494 million during the trading session. The local bourse made a strong comeback Tuesday to close 1.28 percent higher at 7,182.59, ending a seven-session losing streak caused by lingering concerns over economic fundamentals. The buying in local shares triggered selling in the U.S. dollar soon after the local foreign exchange market opened, with some foreign banks cutting their holdings in the greenback in exchange for the Taiwan dollar, dealers said. During the trading session, the South Korean won hit a 13-month high against the U.S. dollar after Seoul reported that its current account surplus rose to a near-record high, which led traders here to pick up the Taiwan dollar, they said.
An improvement in consumer spending reported by Washington overnight also encouraged traders to move their funds out of the U.S. dollar as a safe haven as the positive news eased their concerns over the global economic outlook, they added. The local central bank later stepped in as it has done recently to buy into the U.S. dollar to reduce the possible impact of a rising Taiwan dollar on the island's global competitiveness, dealers said. Turnover in the local foreign exchange market remained thin as many traders remained on the sidelines ahead of a meeting scheduled by European leaders for Wednesday to discuss the debt problems in Greece, they said. (By Eva Feng and Frances Huang)


Updated : 2021-04-12 02:42 GMT+08:00