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

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

Taipei, May 7 (CNA) The U.S. dollar rose against the Taiwan dollar Thursday, gaining NT$0.050 to close at the day's high of NT$30.803 as traders took cues from a plunge in the local equity market to cut their holdings in the local currency, dealers said. The weakness of the South Korean won against the U.S. dollar also gave traders here an indication to buy into the Taiwan dollar, while the local central bank's intervention added downward pressure on the local currency in the late trading session, they said. The greenback opened at NT$30.760, and moved to a low of NT$30.600 before rebounding. Turnover totaled US$857 million during the trading session. The U.S. opened higher against the Taiwan dollar on follow-through buying, but soon fell to negative territory as traders were influenced by a move by the People's Bank of China to raise the Chinese Yuan's reference rate against the U.S. currency, dealers said. With the local stock market trading in consolidation mode in the earlier session, the U.S. dollar moved in a quiet mode during most of the session, they said. But, sell-off in the local bourse emerged in the late session, prompting traders here to dispose of the Taiwan dollar later in the session, dealers said. The weighted index on the Taiwan Stock Exchange closed down 1.16 percent at the day's low of 9,704.11 points Thursday as investors rushed to sell financial stocks in response to a warning by the U.S. Federal Reserve Chair Janet Yellen about potentially high risks on Wall Street. Foreign institutional investors sold a net NT$1.51 billion (US$49.02 million) worth of local shares on the main board Thursday. In the late session in the foreign exchange market, the local central bank stepped in to further prop up the U.S. dollar by taking advantage of the losses suffered by the won, which fell to a three-week low against the greenback, dealers said. The falling won came amid fears over the Bank of Korea's intervention after Minister of Finance Choi Kyung-hwan said that the Seoul government will take action to prevent its currency from gaining too rapidly. (By Frances Huang)


Updated : 2021-09-24 10:02 GMT+08:00