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

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

Taipei, July 25 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.017 to close at NT$30.035 as other regional currencies posted gains against the greenback and the local currency followed suit, dealers said. The U.S. dollar's fall was limited, however, by a sell-off by foreign institutional investors in Taiwan's equity markets and intervention by Taiwan's central bank to restrain the appreciation of the Taiwan dollar, they said. The greenback opened at NT$30.060, and moved between NT$29.950 and NT$30.069 before the close. Turnover totaled US$707 million during the trading session. After opening higher, the U.S. dollar soon fell into negative territory as traders were led by the strength of other regional currencies, in particular the South Korean won, to push up the value of the Taiwan dollar, dealers said. The won rose 0.26 percent against the U.S. dollar at one point as Korean exporters repatriated their earnings back home and foreign institutional investors moved funds into the Korean stock exchange.
But the reverse was true in Taiwan, where the stock market's weighted index closed down 0.92 percent at 9,439.29 after the bellwether electronics sector got hammered, keeping the greenback's fall in check, dealers said. Foreign institutional investors were net sellers of NT$1.28 billion (US$42.62 million) in local shares, increasing their demand for the U.S. dollar, after buying a net NT$1.67 billion in shares on Thursday. The weaker Chinese yuan, which lost ground after the People's Bank of China lowered the yuan reference rate against the greenback, also relieved some pressure on the U.S. dollar in Taiwan's forex market, dealers said. Taiwan's central bank stepped in late in the trading session to vault the U.S. dollar back above NT$30, a level many believe the bank wants to maintain in the short term, they said. Turnover in Taiwan's foreign exchange market remained moderate Friday as many traders remained cautious ahead of the release of data on U.S. June durable goods orders due out later in the day.
The numbers could provide some idea of the state of the U.S. economy and consequently how the Federal Reserve might adjust its monetary policy, dealers said. The Fed's next policymaking meeting is scheduled for July 29-30. (By Maranda Hsu and Frances Huang)


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