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

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

Taipei, April 8 (CNA) The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.074 to close at NT$31.226 after moving in consolidation mode during most of the session following a strong technical rebound upon the opening, dealers said. Local central bank intervention propped up the U.S. dollar, helping the currency back into positive territory toward the close of the session, while foreign institutional selling in the local bourse also gave a boost to the U.S. currency, the dealers said. Market sentiment remained cautious as many traders here tended to stay on the sidelines, waiting for the release of minutes of the last policy making meeting of the U.S. Federal Reserve held in mid-March, they said. The greenback opened at the day's high of NT$31.330 and moved to a low of NT$31.078 before rebounding. Turnover totaled US$820 million during the trading session. The U.S. dollar opened sharply higher on a technical rebound from a slump seen a session earlier, but soon fell into negative territory, with the weakness continuing for most of the trading session at a time when foreign funds kept moving into the country, the dealers said. With the U.S. dollar falling and coming closer to the NT$31 mark, the central bank made its presence felt to slow the pace of the Taiwan dollar's appreciation, in a bid to assuage the impact on Taiwan's exports, they said. The local central bank took cues from the weakness of the South Korean won, which fell 0.2 percent against the U.S. dollar at one point amid fears of Bank of Korea intervention, to drag down the Taiwan dollar, they added. The Taiwan dollar tracks the won closely as Taiwan and South Korea compete with each other in the local market. Even before the local central bank stepped in, heavy selling by foreign institutional investors in the local bourse deflated the Taiwan dollar to some extent, the dealers said. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$6.59 billion (US$211 million)-worth of local shares on the main board, sending the weighted index down 0.72 percent at the close. (By Frances Huang)


Updated : 2021-09-29 05:57 GMT+08:00