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

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

Taipei, March 6 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.057 to close at NT$31.450 as foreign institutional buying in Taiwan's stock market boosted demand for the local currency, dealers said. The strength of other regional currencies, in particular the South Korean won, led traders here to raise their holdings in the Taiwan dollar and further push down the U.S. dollar, they said. The greenback opened at the day's high of NT$31.525, and moved to a low of NT$31.428 before rebounding. Turnover totaled US$593 million during the trading session. The U.S. dollar opened higher against the Taiwan dollar on follow-through buying, but soon fell into negative territory as traders were motivated by foreign institutional buying in the stock market to cut their greenback holdings, dealers said. According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$3.85 billion (US$122 million) in shares on the main board Friday after a net sell of NT$820 million seen a session earlier. They were motivated, dealers said, by the European Central Bank's (ECB) finalization of the timetable for its quantitative easing program, which will begin on March 9. Once the ECB starts pumping funds into the market, more foreign investors could move money into Asia, which would not only boost regional equity markets but also regional currencies, dealers said. The won, which the Taiwan dollar tracks closely, steamed ahead on the possibility of further fund inflows, leading traders to take a similar position on the local currency, they said. Turnover remained light, however, as many investors appeared hesitant to act before the release of a U.S. jobs report later Friday that was expected to serve as an important barometer of the Federal Reserve's monetary policy, dealers said. (By Frances Huang)


Updated : 2021-09-18 22:17 GMT+08:00