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

Taipei, Dec. 7 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.011 to close at NT$29.125 as the local bourse staged a rebound to raise demand for the local currency, dealers said. However, the losses suffered by the greenback were limited by the end of the session as the local central bank continued its efforts to slow down the pace of the Taiwan dollar's appreciation in a bid to prop up Taiwan's global competitiveness, they said. The U.S. dollar opened at NT$29.150, and moved between NT$29.050 and NT$29.155 before the close. Turnover totaled US$589 million during the trading session. On the back of buying in large-cap high-tech stocks, the weighted index on the Taiwan Stock Exchange made a mild comeback, closing up 0.24 percent at 7,642.26 points. Foreign institutional investors served as net buyers of NT$2.76 billion (US$94.76 million) worth of local shares, which prompted traders to sell the U.S. dollar in exchange for the Taiwan dollar to meet fund demand, dealers said. After the U.S. dollar fell to NT$29.050, the central bank's intervention intensified, they said, adding the central bank is believed to have tried its best to keep the greenback above the NT$29.00 level. In addition to the central bank's efforts to bolster the U.S. dollar, a weakening euro helped the U.S. unit cushion downward pressure in the local foreign exchange market to some extent, dealers said. The weakness of the euro reflected rising concerns over the global economy after European Central Bank slashed its forecast of the eurozone's economic growth for 2013 to range between 0.3 percent growth and a 0.9 percent contraction, compared with a previous estimate of a range from 1.4 percent growth to a 0.4 percent contraction, they said. As the market has expected Germany, the largest economy in Europe, will report sluggish industrial production output data in October, concerns over the economy have been running deeper, they added. At the end of the session, turnover of the local foreign exchange market remained moderate despite the central bank's intervention since many traders preferred to stay on the sidelines, waiting for the U.S. November non-farm payrolls data due later in the day, dealers said. (By Kao Chao-fen and Frances Huang)