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

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

Taipei, March 22 (CNA) The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.056 to close at the day's high of NT$29.909, as a falling euro exerted downward pressure on the local currency, dealers said. It was the third consecutive session during which the greenback posted gains in the local foreign exchange market and hit a high since Sept. 3, 2012, when the currency closed at NT$29.920. The weakness in the euro had led to rising concern over the debt crisis in Cyprus, prompting traders at home and abroad to move their funds to the U.S. dollar as a safe haven, dealers said. Further selling by foreign institutional investors in the local bourse had increased pressure on the Taiwan dollar, they added. The greenback opened at NT$29.860, and slipped to an early low of NT$29.770, before rebounding. Its turnover totaled US$947 million during the trading session. The U.S. dollar continued its upward trend against the Taiwan dollar soon after the local foreign exchange market opened as traders took cue from a weakening euro, dealers said. Although the U.S. dollar faced some profit taking at one point during the session, the currency turned stronger again toward the close, amid lingering concerns over the debt situation in Cyprus, they added. Fears over a possible default in Cyprus escalated after the European Central Bank issued a deadline of March 25 to Cyprus, saying that if the debt-ridden country fails to agree to a bailout plan with the European Union and the International Monetary Fund, the ECB will cut off emergency funds to its banking system. The Taiwan dollar faced more downward pressure as a result of foreign selling in the local stock market, prompting traders to cut holdings in the local currency in exchange for the U.S. dollar, dealers said. Foreign institutional investors also served as net sellers of NT$2.57 billion (US$85.92 million) to send the weighted index on the Taiwan Stock Exchange down by 0.19 percent to the day's low of 7,796.22 points. (By Kao Chao-fen and Frances Huang)


Updated : 2021-04-18 19:55 GMT+08:00