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

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

Taipei, April 2 (CNA) The U.S. dollar fell against the Taiwan dollar Thursday, shedding NT$0.059 to close at NT$31.303 as fears over an interest rate hike by the U.S Federal Reserve faded to some extent after the latest disappointing economic data released in Washington overnight, dealers said. Selling in the U.S. dollar increased as traders here took cues from the strength of other regional currencies, in particular the South Korean won -- which the Taiwan dollar closely tracks -- to buy into the local unit, the dealers said. However, the losses suffered by the U.S. dollar were limited by the local central bank's intervention to assuage the impact of the Taiwan dollar's appreciation in a bid to boost exports, they added. The greenback opened at the day's high of NT$31.362 and moved to a low of NT$31.201 before rebounding. Turnover totaled US$759 million during the trading session. The U.S. dollar opened flat against the Taiwan dollar, but soon fell into negative territory as investors were motivated by the latest manufacturing activity data in the U.S. to cut their holdings in the greenback, the dealers said. The U.S. Institute for Supply Management's manufacturing purchasing managers index fell to 51.5 in March from 52.9 in February, shy of an earlier forecast of 52.5, which prompted traders in the region to expect that the Fed will slow its pace of kicking off an interest rate hike cycle, they said. Such expectations gave a boost to most of the regional currencies, with the won hitting a high against the U.S. dollar at one point, the dealers said. The won's gains led traders here to buy into the Taiwan dollar, they added. A move by the People's Bank of China to raise the Chinese yuan's reference rate against the U.S. dollar, and heavy foreign institutional buying in the local bourse, added downward pressure on the U.S. dollar against the Taiwan dollar, the dealers said. According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$5.27 billion (US$168 million)-worth of local shares on the main board, sending the weighted index up 0.97 percent at the close. Affected by such unfavorable factors in the regional and local markets, the U.S. dollar fell below NT$31.3 and even moved closer to NT$31.20 at one point before the local central bank stepped in to help the greenback recoup most of its earlier losses, the dealers said. The moderate turnover in the local foreign exchange market showed that sentiment remained cautious as many traders stayed on the sidelines awaiting the non-farm payroll data in the U.S., due out later in the day, for more clues about the Fed's monetary policy, they said. (By Frances Huang)


Updated : 2021-09-26 14:12 GMT+08:00