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

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

Taipei, May 24 (CNA) The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.005 to close at the day's high of NT$30.030 behind central bank intervention, dealers said. The intervention showed that Taiwan's central bank wants to keep the U.S. dollar above the NT$30.00 mark in the short term to boost Taiwan's exports at a time when global demand remains sluggish, they said.
The U.S. currency opened at NT$30.025 and moved to an early low of NT$29.880 before rebounding. Turnover totaled US$788 million during the trading session.
Before the central bank moved into the market late in the session, the U.S. dollar continued its slide as traders in Taipei were led by a rising Chinese yuan to dump the greenback in exchange for the Taiwan dollar, dealers said. The yuan got a boost after the People's Bank of China (PBOC) raised the reference rate for the unit to 6.1867 yuan against the U.S. dollar, a new high, compared with 6.1947 a day earlier, they said. China's central bank has repeatedly hiked the yuan's reference rate in recent sessions in response to further fund inflows into the region, prompting traders in Taiwan to buy into the local currency on expectations that other regional currencies will appreciate, they added. A rising yen also gave traders here reason to increase their holdings in the Taiwan dollar after the Japanese equity market staged a technical rebound, dealers said. Even ahead of the central bank's intervention, the losses suffered by the greenback in Taiwan's foreign exchange market were capped to some extent by the selling of foreign institutional investors on Taiwan's stock exchange, they said. Foreign institutional investors were net sellers of NT$4.25 billion (US$142 million) in shares in Taipei on Friday, according to stock exchange data. Turnover remained moderate as many traders preferred to stay on the sidelines amid concerns over a possible early exit by the United States Federal Reserve from its quantitative easing program, dealers said. (By Kao Chao-fen and Frances Huang)


Updated : 2021-06-14 21:05 GMT+08:00