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

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

Taipei, Feb. 10 (CNA) The U.S. dollar fell against the Taiwan dollar Tuesday, shedding NT$0.058 to close at NT$31.502 as traders here heeded the strength of other regional currencies, particularly the South Korean won, to sell the U.S. currency, dealers said. Foreign institutional buying in the local bourse and a hike of the Chinese yuan's reference rate against the U.S. dollar also placed pressure on the U.S. currency before the local central bank stepped in to help the greenback recoup part of its earlier losses, they said. The U.S. dollar opened at NT$32.560 and moved between NT$31.460 and NT$31.569 before the close. Turnover totaled US$644 million during the trading session. After opening flat, it soon fell into the red as traders took cues from gains posted by the won as hopes that Seoul would further ease its monetary policy have been reduced to some extent, dealers said. South Korea's Finance Minister Choi Kyung-hwan said in an interview with Reuters that his country is not in a hurry to lower interest rates as the local economy has been on the way to recovery. Choi's comments led other regional currencies, including the Taiwan dollar, to trend higher, staging a technical rebound from the losses seen in the previous session, dealers said. Previously, the market had anticipated that South Korea would be eager to cut interest rates to exacerbate currency depreciation competition in the region. A move by the People's Bank of China to raise the yuan's reference rate by 0.03 percent gave additional indication to traders in the region to raise their holdings in local currencies, dealers said. In Taiwan's bourse, foreign institutional investors bought a net NT$4.43 billion (US$141 million) worth of local shares, which boosted demand for the Taiwan dollar further during the session, they said. The U.S. dollar fell below the NT$31.50 mark at one point before the local central bank's intervention vaulted it back to that level before the close, as the bank was reluctant to see any strong gains by the Taiwan dollar that could hurt the country's exports, dealers said. (By Frances Huang)


Updated : 2021-09-25 16:26 GMT+08:00