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

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

Taipei, Aug. 14 (CNA) The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.03 to close at NT$30.032 after moving in consolidation mode on a lack of fresh leads, dealers said. Trading volume shrank as many local traders remained cautious about what the U.S. Federal Reserve will do next about its bond-buying program, the dealers said. It was the third consecutive session for the greenback to appreciate against the Taiwan dollar. The U.S. dollar opened at the day's high of NT$30.060, and moved to a low of NT$29.959 before rebounding. Turnover totaled US$474 million during the trading session. The U.S. unit regained steam soon after the local foreign exchange market opened as traders took cues from the weakness of other regional currencies, in particular the South Korean won, the dealers said. The won fell 0.3 percent against the U.S. dollar at one point, the steepest decline in two weeks, on expectations that the Fed will start to scale back its monthly US$85 billion stimulus plan from September. After several Fed officials spoke about the possibility of a tapering-off in liquidity-easing measures, many currency traders in Taiwan and around the region have been inclined to believe the U.S. central bank will change its course as early as in September, when the next policymaking meeting is held, the dealers said. A correction in the local bourse also placed downward pressure on the Taiwan dollar and in turn propped up the U.S. dollar in the early session, they said. However, the U.S. dollar encountered profit taking, as some foreign banks shifted to the sell side to drag down the greenback to the day's lowest level, the dealers said. As it has done in recent sessions, the local central bank stepped in after the U.S. dollar fell below the NT$30 mark to vault the currency above that level at the end of the session in a bid to make locally made goods cheaper in the global market, they said. Trade in the local foreign exchange market is expected to remain quiet until the Fed holds its next policymaking meeting scheduled for Sept. 17-18, in which it might announce a change in its monetary policy, the dealers said. (By Kao Chao-fen and Frances Huang)


Updated : 2021-06-19 03:09 GMT+08:00