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

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

Taipei, May 5 (CNA) The U.S. dollar rose against the Taiwan dollar Tuesday, gaining NT$0.005 to close at the day's high of NT$30.781 after a quiet trading session as traders here became cautious about the regional economy, dealers said. The cautiousness resulted from report of a drop in China's manufacturing activity in April, dealers said. The local central bank also entered the trading floor, helping to prop up the U.S. dollar, which had suffered some loses earlier in the session, dealers said. The greenback opened at NT$30.780, and moved to a low of NT$30.670 before rebounding. Turnover totaled US$550 million during the trading session. The U.S. currency opened higher against the Taiwan dollar on a mild technical rebound, but soon entered consolidation mode, moving at a slow pace throughout the session as many traders remained on the sidelines, dealers said. Traders appeared reluctant to make transactions as they became cautious about China's economy after HSBC/Markit reported a drop in China's purchasing managers' index (PMI) from 49.6 in March to 48.9 in April, the country's lowest in a year. In addition, the sluggish local equity market failed to give foreign exchange traders clear indications, which kept the greenback in a narrow trading range, dealers said. The weighted index on the Taiwan Stock Exchange closed down 0.25 percent at 9,820.13 points, with foreign institutional investors remaining on the buy side, purchasing a net NT$3.61 billion (US$117 million) worth of local shares on the main board. Late in the forex trading session, the local central bank stepped in as it has done almost every session recently, giving a boost to the U.S. dollar, dealers said, adding that amid light turnover, it was easier for the central bank to make its presence felt. (By Frances Huang)


Updated : 2021-09-19 12:30 GMT+08:00