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U.S. dollar closes higher on Taipei forex

U.S. dollar closes higher on Taipei forex

Taipei, Dec. 30 (CNA) The U.S. dollar rose against the Taiwan dollar Tuesday, gaining NT$0.005 to close at NT$31.766 after the greenback moved in a narrow range throughout the session on reduced foreign trader participation, dealers said. The local central bank stepped in to prop up the U.S. dollar, helping the currency offset the impact of a strong Japanese yen and a net buy by foreign institutional investors in the local bourse, they said. The greenback opened at NT$31.780 and moved between NT$31.704 and NT$31.784 before the close. Turnover totaled US$646 million during the trading session. The U.S. dollar opened higher on follow-through buying from a session earlier but soon faced downward pressure as traders took cues from the gains posted by the yen, dealers said. Buying flocked to the yen as traders in the region perceived the currency as a safe haven at a time when the Tokyo market suffered a plunge of about 1.60 percent, and the higher yen gave a strong indication to traders here to buy into the Taiwan dollar, they said. In the local bourse, foreign institutional investors continued to stand on the buy side to buy a net NT$2.39 billion (US$75.24 million) worth of local shares, which lent further support to the Taiwan dollar, they added. In addition, with the year coming to an end, local exporters bought more of the Taiwan dollar during the session in a bid to meet seasonal fund demand, dealers said, adding that such buying is expected to continue into the last day of 2014 Wednesday. Even ahead of the local central bank's intervention, a move by the People's Bank of China to lower the Chinese yuan's reference rate against the U.S. dollar let some air out of the Taiwan dollar, dealers said. As it has done almost every session recently, the local central bank jumped onto the trading floor to lower its holdings in the Taiwan dollar in exchange for the U.S. dollar in a bid to protect Taiwan's exports, they said. The moderate turnover made it easier for the local central bank to intervene in the foreign exchange market, dealers said. As long as local exporters keep buying the Taiwan dollar, the central bank's presence is likely to continue, they said. (By Frances Huang)


Updated : 2021-04-14 07:58 GMT+08:00