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

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

Taipei, April 30 (CNA) The U.S. dollar rose against the Taiwan dollar Thursday, gaining NT$0.057 to close at NT$30.752 as the local central bank played a more visible role in the market, helping the U.S. currency recoup its early losses, dealers said. The central bank's buying in the U.S. dollar helped end the currency's four-session drop and offset the effects of reduced concerns over an imminent interest rate hike in the United States, as the country reported worse than expected first-quarter economic growth , dealers said. The greenback opened at NT$30.700, and moved between NT$30.480 and NT$30.800 before the close. Turnover totaled US$1.116 billion during the trading session. The U.S. dollar opened higher against the Taiwan dollar on a mild technical rebound, but selling soon set in as traders here, taking cues from U.S.' first-quarter economic data, dumped the dollar, dealers said. The U.S. economy, the largest in the world, grew only 0.2 percent in the first quarter, much lower than the market estimate of about 1 percent, which has raised concerns about the pace of the country's economic recovery, dealers said. But those concerns served to quell worry that the Fed would start an interest rate hike in June, dealers said. As a result, the U.S. dollar trended lower in the regional market, they said. The weakness of the U.S. dollar in the region prompted traders here to cut their holdings in the currency, but the downturn was reversed by the end of the session as the local central bank intervened, dealers said. The central bank has been intensifying its efforts to slow the pace of the Taiwan dollar's appreciation since Taiwan's high-tech sector reported foreign exchange losses in the first quarter due to a stronger local currency, dealers said, They said that the central bank's aggressive intervention sends a clear signal to the market that the bank has little tolerance for speculation in the Taiwan dollar by foreign investors, who have moved huge funds into Taiwan. (By Frances Huang)


Updated : 2021-09-26 21:54 GMT+08:00