Alexa
  • Directory of Taiwan

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

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

Taipei, Jan. 7 (CNA) The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.005 to close at the day's high of NT$32.001 after moving in a narrow range amid cautious sentiment ahead of the release of the minutes of the U.S. Federal Reserve's last meeting of 2014, dealers said. The local central bank entered the market again, helping the U.S. dollar recoup all of its losses from earlier in the session, which were caused by local traders trying to lock in the gains they had built in the U.S. currency, dealers said. Meanwhile, worry persisted about further depreciation of the Taiwan dollar if the U.S. Fed has decided to raise interest rates, dealers said. The greenback opened at NT$31.998, and moved to a low of NT$31.935 before rebounding. Turnover totaled US$740 million during the trading session. The U.S. dollar opened higher on a mild technical rebound but soon fell into negative territory as traders shifted to the sell side, raising their holdings in the Taiwan dollar and pocketing their U.S. currency's gains from recent sessions, dealers said. Prior to the central bank's intervention late in the session, foreign institutional buying in the local bourse lowered demand for the Taiwan dollar and helped limit the U.S. dollar losses to some extent, dealers said. Foreign institutional investors sold a net NT$3.86 billion (US$121 million) worth of local shares on the main board Wednesday, according to the Taiwan Stock Exchange. Pushed by the central bank's buying, the U.S. dollar returned to the NT$32.00 mark at the close, a level that the central bank has been trying to maintain so as to keep Taiwan-made products cheap in the world market, dealers said. Despite the central bank's efforts, the U.S. dollar moved in a narrow range as many traders were keeping an eye out for the release of the minutes of of the U.S. Fed's last meeting in 2014, dealers said. In particular, traders are looking for clues on when U.S. central bank will kick off an interest rate hike cycle after ending its six-year quantitative easing program in October, dealers said. (By Frances Huang)


Updated : 2021-09-23 15:15 GMT+08:00