Alexa
  • Directory of Taiwan

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

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

Taipei, Jan. 21 (CNA) The U.S. dollar fell against the Taiwan dollar Wednesday, shedding NT$0.143 to close at NT$31.553 as traders here bought into the local unit throughout the session, taking cues from a rise in other regional currencies, dealers said. Strong foreign institutional buying in the local bourse added downward pressure on the U.S. dollar before the local central bank put in a presence late in trading session, helping the U.S. currency to recover, dealers said. The greenback opened at the day's high of NT$31.710, and moved to a low of NT$31.489 before rebounding. Turnover totaled US$773 million during the trading session. The U.S. dollar opened higher against the Taiwan dollar as other regional currencies rebounded, dealers said. The Japanese yen, in particular, climbed as many traders rushed to lock in their U.S. dollar gains from the previous session, and the buying accelerated after the Bank of Japan (BOJ) announced its decision to retain its economic stimulus measures, dealers said. The strong showing by the yen encouraged traders in the region to raise their holdings in other regional currencies, including the South Korean won and the Taiwan dollar, dealers said. On the local bourse, foreign institutional investors bought a net NT$17.22 billion (US$546 million) worth of shares on the main board Wednesday, sending the weighted index up 0.73 percent to the day's high of 9,319.71 points at the close. The buying also increased demand for the Taiwan dollar, dealers said. As selling in the U.S. dollar increased, it fell below the NT$31.50 mark at one point before the local central bank stepped in, helping to vault the greenback back to that level by the close, dealers said. Despite the central bank's intervention, turnover in the local foreign exchange market remained moderate as many traders preferred to stay on the sidelines until after the European Central Bank's policy meeting, which begins Thursday, dealers said. (By Pan Chi-i and Frances Huang)


Updated : 2021-09-26 23:45 GMT+08:00