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

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

Taipei, Feb. 26 (CNA) The U.S. dollar fell against the Taiwan dollar Thursday, shedding NT$0.029 to close at NT$31.503 as the local central bank stepped onto the trading floor to help the greenback recoup most of its earlier losses at the end of the session, dealers said. The central bank's presence offset the impact on the U.S. dollar from seasonal demand for the Taiwan dollar and from foreign institutional buying in the local bourse, the dealers said. The greenback opened at the day's high of NT$31.532 and moved to a low of NT$31.378 before rebounding. Turnover totaled US$786 million during the trading session. The U.S. dollar opened flat but soon fell into negative territory as local exporters rushed to buy the Taiwan dollar to meet their fund requirements with the current month approaching an end, the dealers said. Thursday was the last trading session for the month, as the foreign exchange market will be closed Friday for a public holiday. In the local bourse, foreign institutional investors bought a net NT$8.42 billion (US$267 million)-worth of local shares on the main board Thursday, which raised demand for the Taiwan dollar and added downward pressure on the U.S. dollar throughout the trading session, the dealers said. As a result, the U.S. dollar fell below the NT$31.40 mark at one point, prompting the local central bank to jump onto the trading floor in the late trading session to vault the greenback back to the NT$31.50 level at the close, they said. As long as foreign institutional investors keep moving funds into the country, the U.S. dollar is expected to face more selling pressure against the Taiwan dollar, and the local central bank could continue its intervention, they added. In addition, since U.S. Federal Reserve Chair Janet Yellen implied in a congressional testimony Tuesday that the Fed is in no hurry to kick off an interest rate hike cycle, traders in the region expect currencies in the region to move higher, the dealers said. (By Frances Huang)


Updated : 2021-09-23 16:41 GMT+08:00