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

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

Taipei, March 25 (CNA) The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.018 to close at NT31.401 as the local central bank intervened, pushing the greenback into positive territory by the close, dealers said. The central bank's buying cushioned the pressure on the U.S. dollar that resulted from the strength of other regional currencies, in particular the South Korean won, and buying in the Taiwan dollar by local exporters seeking to meet seasonal fund demand, dealers said. The greenback opened at NT$31.400, and moved between NT$31.270 and NT$31.405 before the close. Turnover totaled US$959 million during the trading session. The U.S. dollar opened higher against the Taiwan dollar on a mild technical rebound from the previous session, but soon fell into the red as traders took cues from local exporters, who were selling the greenback in exchange for the local currency to meet month-end fund demand, dealers said. The U.S. dollar remained weak throughout most of the trading session, partly in reflection of the gains posted by the won, which is closely tracked by the Taiwan dollar as South Korea and Taiwan are fierce competitors in the global market, dealers said. Late in the session, however, the local central bank stepped in, as it has been doing recently, to prop up the greenback in a bid to prevent Taiwanese exporters from being hurt by a high Taiwan dollar, dealers said. But even before the central bank's intervention, the Taiwan dollar had deflated somewhat due to U.S. dollar demand amid foreign institutional selling in the local bourse, dealers said. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$3.31 billion (US$105 million) worth of local shares on the main board, sending the weighted index down 0.65 percent by the close. Dealers said that if the Taiwan dollar buying by local exporters continues until the end of the month, the central bank will continue to intervene over the next few sessions. Sentiment in the local foreign exchange market remained cautious as many traders were keeping a close eye on the local central bank's quarterly policymaking meeting, which is scheduled to conclude Thursday, dealers said. (By Frances Huang)


Updated : 2021-09-24 23:38 GMT+08:00