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

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

Taipei, Feb. 12 (CNA) The U.S. dollar rose against the Taiwan dollar Thursday, gaining NT$0.066 to close at the day's high of NT$31.630 amid cautious sentiment toward the debt situation in Greece, dealers said. The trading volume was moderate as many traders remained on the sidelines, keeping a close eye on the Greek debt situation after a meeting of European finance ministers failed to reach a deal Wednesday, dealers said. A weak Japanese yen also placed downward pressure on the Taiwan dollar, but continued foreign institutional buying in the local bourse lent some support to the local currency, dealers said. The greenback opened at NT$31.650, and moved to a low of NT$31.500 before rebounding. Turnover totaled US$767 million during the trading session. After opening higher on follow-through buying from the previous session, the U.S. dollar continued to strengthen as traders here remained alert to the financial situation in the eurozone, dealers said. Many traders here were closely following Wednesday's eurozone finance minsters' meeting, but it failed to reach any breakthrough on Greece, which dampened market confidence, dealers said. In turn, this sent the euro lower and hurt Asian currencies, in particular the yen, they said. The finance ministers have scheduled another meeting on Feb. 16 to continue their efforts to deal with the Greek debt problem, while European Union leaders are due to meet later Thursday. There is little hope in the market, however, that the meetings will produce any conclusive action, dealers said. In Thursday's trade, selling in the Taiwan dollar was exacerbated by the People's Bank of China's decision to lower the Chinese yuan's reference rate against the U.S. dollar, dealers said. Under such unfavorable circumstances, they said, traders moved their funds from the Taiwan dollar into the U.S. dollar. The greenback was deflated somewhat, however, as foreign institutional investors bought NT$8.5 billion (US$269 million) net worth of local shares on the main board, dealers said. (By Frances Huang)


Updated : 2021-09-17 15:19 GMT+08:00