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

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

Taipei, May 13 (CNA) The U.S. dollar fell against the Taiwan dollar Wednesday, shedding NT$0.030 to close at NT$30.780 as traders seized on the technical rebound in the local equity market to buy into the local currency, dealers said. Selling in the U.S. dollar was also triggered by a move by the People's Bank of China (PBOC) to boost the Chinese yuan's reference rate, which lent additional support to the yuan and other regional currencies, they said. Taiwan's central bank intervened late in the trading session as it has in recent weeks to help the U.S. dollar recover most of its earlier losses, dealers said. The greenback opened at the day's high of NT$30.810, and moved to a low of NT$30.658 before rebounding. Turnover totaled US$503 million during the trading session. The U.S. dollar opened flat against the Taiwan dollar but soon tumbled as traders rushed to sell the greenback on stronger demand for the local currency following a rebound in share prices on the Taiwan stock exchange, dealers said. Led by gains posted by the semiconductor sector, the weighted index on the stock exchange closed up 0.44 percent after foreign institutional investors bought a net NT$4.16 billion (US$135 million) in local shares. Currency traders here also paid close attention to gains in the yuan, which rose to a six-day high at one point, after the PBOC raised the currency's reference rate against the U.S. dollar, dealers said. The U.S. dollar fell below the NT$30.70 mark against the Taiwan dollar before the central bank intervened to push the greenback back above that level at the close. Despite the intervention, turnover in the local foreign exchange market remained moderate as many traders were waiting for the U.S. to release its retail sales data later in the day, dealers said.
They were concerned the data could set off unanticipated movements in global financial markets. (By Frances Huang)


Updated : 2021-09-21 13:26 GMT+08:00