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

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

Taipei, April 24 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.080 to close at NT$31.051 as traders were encouraged by strong foreign institutional buying in the local bourse to buy into the greenback, dealers said. The U.S. dollar also faced downward pressure after manufacturing activity in Washington weakened, prompting traders in the region to dump the U.S. currency, the dealers said. The losses suffered by the U.S. dollar, however, were mostly recovered in the latter part of the trading session by the local central bank's intervention that was aimed at propping up the currency in a bid to slow the pace of the Taiwan dollar's appreciation, they added. The greenback opened at the day's high of NT$31.130 and moved to a low of NT$30.816 before rebounding. Turnover totaled US$1.013 billion during the trading session. The U.S. dollar opened lower against the Taiwan dollar on a technical retreat from a day earlier, and losses escalated as traders here witnessed a strong showing on the local bourse, prompting them to raise their holdings in the local currency, the dealers said. According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$46.48 billion (US$1.50 billion)-worth of local shares on the main board Friday, pushing the weighted index 1.18 percent higher at the close. The heavy foreign buying triggered an upswing for the Taiwan dollar, the dealers said. Selling in the U.S. dollar reflected concerns over the U.S. economy, the largest in the world, after manufacturing activity showed signs of a slowdown in April, the dealers said. The latest data released by Markit indicated that the U.S. purchasing managers' index for April fell to 54.2 from 55.7 recorded in March. The April figure also fell behind an earlier market expectation of 55.7. Worries over the U.S. economy pushed down the greenback in the region, giving a boost to other regional currencies such as the South Korean won and the Japanese yen, which allowed traders here to have an excuse to chase the Taiwan dollar, the dealers said. The U.S. dollar fell below the NT$31.00 mark at one point before the central bank stepped in, helping the currency return to that level at the close, the dealers said, adding that the NT$31 level could be the short term bottom line for the central bank. (By Pan Chi-I and Frances Huang)


Updated : 2021-09-18 22:02 GMT+08:00