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

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

Taipei, Oct. 8 (CNA) The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.052 to close at the day's high of NT$30.505 in a quiet trading session marked by many traders on the sidelines as they waited for meeting minutes released by the U.S. Federal Reserve, dealers said. Traders appeared wary ahead of the release of the meeting minutes which could give clues about what the Fed will do with its monetary policy, they said. The local central bank jumped into the trading floor to prop up the U.S. dollar in the late session, helping the currency end above the previous close to strengthen local exporters' global competitiveness, they added. The greenback opened at NT$30.490 and moved to a low of NT$30.416 before rebounding. Turnover totaled US$656 million during the trading session After opening higher on a technical rebound against the Taiwan dollar, the U.S. dollar fell to negative territory as traders were encouraged by a rising Chinese yuan to pick up the local currency, dealers said. The strength of the yuan, which rose 0.07 percent against the U.S. dollar at one point, came after the People's Bank of China (PBOC) raised the yuan reference rate in exchange for the greenback, they said. The rate hike prompted traders to think the PBOC, China's central bank, will allow further upturn of its currency against the U.S. dollar, which could push other regional currencies higher, they added. However, the gains posted by the Taiwan dollar were limited by concerns over a possible move made by the Fed to launch an interest rate hike cycle after it winds down the current bond buying program, likely later in the month, and traders in Taiwan stayed largely on the sidelines before the release of the minutes of the latest Fed meeting from mid-September, they said. In the late trading session, the local central bank, seeking the continued weakness of the South Korean won, entered the market to buy into the U.S. dollar, pushing down the Taiwan dollar below the previous closing level, dealers said. (By Pan Chi-i and Frances Huang)


Updated : 2021-04-11 22:15 GMT+08:00