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

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

Taipei, Jan. 14 (CNA) The U.S. dollar fell against the Taiwan dollar Wednesday, shedding NT$0.088 to close at NT$31.774 as traders here were encouraged by the strength of the Japanese yen to buy into the local currency, dealers said. However, foreign institutional selling in the local bourse gave some support to the U.S. dollar and capped the gains by the Taiwan dollar to some extent during the session, dealers said. It was the first time that the U.S. dollar fell below the NT$30.80 mark since Dec. 31, 2014, when it closed at NT$31.718. The greenback opened at the day's high of NT$31.862, and moved to a low of NT$31.756 before rebounding. Turnover totaled US$441 million during the trading session. The U.S. dollar opened flat, but soon fell into negative territory as traders here took cues from investors in Tokyo who moved their funds into the Japanese currency as a safe haven amid heavy losses in the equity market there, dealers said. On Wednesday, the yen climbed for the fourth consecutive session against the U.S. dollar, rising 0.8 percent at one point, which prompted traders in the region to increase their holdings in other regional currencies, dealers said. Traders here also saw other regional currencies, such as the South Korean won and the Chinese yuan, moving higher so they bought more of the Taiwan dollar, riding the uptrend among the regional currencies, dealers said. Foreign institutional selling in the local bourse deflated the Taiwan dollar somewhat even before the local central bank intervened to cap the local currency's gains in a bid to protect Taiwan's exports, dealers said. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$6.65 billion (US$209 million) worth of local shares, sending the weighted index 0.55 percent lower to 9,180.23 at the close. (By Pan Chi-i and Frances Huang)


Updated : 2021-09-23 22:09 GMT+08:00