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

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

Taipei, March 4 (CNA) The U.S. dollar fell against the Taiwan dollar Wednesday, shedding NT$0.028 to close at NT$31.480 as foreign fund inflows boosting demand for the local currency, dealers said. The strength of other regional currencies, such as the Japanese yen and South Korean won, added downward pressure on the U.S. dollar in the local market, as did a move by the Chinese central bank to raise the reference rate of the Chinese yuan against the greenback, they said. Taiwan's central bank intervened late in the trading session to help the U.S. dollar recoup most of its earlier losses, but turnover remained moderate as traders were cautious ahead of the U.S. Federal Reserve's release of its Beige Book -- an assessment of the state of the U.S. economy -- dealers said. The greenback opened at the day's high of NT$31.510, and moved to a low of NT$31.310 before rebounding. Turnover totaled US$618 million during the trading session. The greenback opened higher on a mild technical rebound against the Taiwan dollar, but soon fell into negative territory as traders seized on the increase in foreign fund inflows into Taiwan to buy into the local currency, dealers said. Foreign institutional investors used some of the inflow of funds to buy a net NT$6.33 billion (US$201 million) in shares in Taiwan's stock market, sparking demand for the Taiwan dollar throughout the session, they said. The gains posted by other regional currencies, including the yen and the won, and the People's Bank of China's move to raise the yuan's reference rate against the U.S. dollar provided further support to the Taiwan dollar. Despite the local central bank's intervention late in the trading session, turnover failed to expand, indicating that many traders were sitting on the sidelines, waiting for the Fed's economic report, dealers said. The Fed's Beige Book is expected to provide clues as to when the U.S. central bank will kick off a rate-hike cycle, which could affect global financial markets, they said. (By Pan Chi-i and Frances Huang)


Updated : 2021-09-23 20:21 GMT+08:00