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

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

Taipei, Dec. 31 (CNA) The U.S. dollar fell against the Taiwan dollar Wednesday, shedding NT$0.048 to close at NT$31.718 as exporters raised their holdings in the local currency to meet year-end fund demand, dealers said. The U.S. dollar saw additional downward pressure against the Taiwan dollar resulting from the strength of the South Korean won and foreign institutional buying in the local bourse, they said. A move by the People's Bank of China (PBOC) to raise the reference rate of the Chinese yuan added selling in the U.S. dollar in the local foreign exchange market, they added. The greenback opened at the day's high of NT$31.766, and moved to a low of NT$31.588 before rebounding. Turnover totaled US$766 million during the trading session. The U.S. dollar opened flat and soon fell to the red as traders took hints from demand for the Taiwan dollar by local exporters to cut their greenback holdings in a move to take advantage of the recent strong gains in the U.S. currency, dealers said. A rebound staged by the won gave a strong indication to traders to buy into the Taiwan dollar as the local currency tended to follow the pace of the Korean unit, dealers said. China' central bank meanwhile hiked the yuan reference rate against the U.S. dollar by about 0.06 percent, which also encouraged traders here to chase the Taiwan dollar, they said. In the local bourse, foreign institutional investors continued to remain on the buy side, serving as net buyers of NT$1.65 billion (US$52.02 million) worth of local shares to boost demand for the Taiwan dollar, dealers said. Taiwan's central bank entered the trading floor in the late session once again to help the U.S. dollar recoup most of its earlier losses in a bid to protect Taiwanese exporters, they said. (By Pan Chi-i and Frances Huang)


Updated : 2021-07-27 03:01 GMT+08:00