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

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

Taipei, May 8 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.038 to close at NT$30.765 as the strength of other regional currencies prompted traders to buy into the local currency and shun the greenback, dealers said. Interest in regional currencies was raised by hopes that China's government will do more to stimulate its economy after the country reported disappointing trade data for April, they said. Taiwan's central bank again intervened to prop up the U.S. dollar as it has in recent sessions and keep the local currency from appreciating too much, they added. The greenback opened at the day's high of NT$30.820, and moved to a low of NT$30.670 before rebounding. Turnover totaled US$696 million during the trading session. The U.S. dollar opened higher against the Taiwan dollar on follow-through buying from a session earlier, but soon fell into negative territory because of its weakness against other regional currencies, dealers said. Currency traders in the region cut their U.S. dollar holdings on expectations that China will soon introduce stimulus measures after it reported that exports in April had fallen 6.4 percent from a year earlier and imports were down 16.2 percent during the month, they said. The plunge in China's exports and imports raised concerns about the country's economic climate, but led currency traders to expect the Chinese government to do something to sustain its economy, they added. As regional currencies gained strength, sending the U.S. dollar below the NT$30.70 mark in Taiwan's foreign exchange market, the central bank stepped in to help the greenback recoup most of its earlier losses by the end of the session, dealers said. Despite the central bank's intervention, however, turnover in the local foreign exchange market remained moderate. Many traders were cautious ahead of the release of U.S. non-farm payroll data for April, which is seen as a potential indicator of whether or not the Federal Reserve will adjust its monetary policy, dealers said. (By Frances Huang)


Updated : 2021-09-24 02:51 GMT+08:00