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

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

Taipei, March 24 (CNA) The U.S. dollar fell against the Taiwan dollar Tuesday, shedding NT$0.120 to close at NT$31.383 as foreign investors continued to move funds into Taiwan, raising demand for the local currency throughout the session, dealers said. The strength of other regional currencies, in particular the South Korean won, added downward pressure on the U.S. dollar against the Taiwan dollar, the dealers said. Selling by foreign institutional investors in the local bourse and local central bank intervention to prop up the greenback deflated the Taiwan dollar to some extent, they added. The greenback opened at NT$31.503 and moved between NT$31.330 and NT$31.504 before the close. Turnover totaled US$735 million during the trading session. The U.S. dollar opened flat against the Taiwan dollar but soon fell into negative territory as traders here were encouraged by further foreign fund inflows to raise their holdings in the Taiwan dollar, the dealers said. With several central banks around the world pumping funds into the market, spill-over effects have led large amounts of funds to enter to the region, pushing up regional currencies, they said. The dealers said that foreign banks operating in Taiwan, in particular, stood on the sell side for the U.S. dollar soon after the local foreign exchange market opened, betting that more fund inflows will boost the local currency in the near term, they added. Buying in other regional currencies appeared more visible after the U.S. Federal Reserve implied in its last policy making meeting held last week that it is in no hurry to kick off an interest rate hike cycle, the dealers said. The gains posted by the won lifted the Taiwan dollar further as the local currency closely followed the Korean unit, they said. In the local bourse, foreign institutional investors sold a net NT$1.09 billion (US$34.73 million)-worth of local shares, which cushioned impact on the U.S. dollar from foreign fund inflows, the dealers said. The local central bank, as it has done almost every session recently, jumped onto the trading floor in the late session to give further support to the U.S. dollar, in a bid to boost Taiwan's exports. (By Frances Huang)


Updated : 2021-05-17 20:32 GMT+08:00