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

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

Taipei, May 14 (CNA) The U.S. dollar fell against the Taiwan dollar Thursday, shedding NT$0.099 to close at NT$30.681 after Washington released lower-than-expected retail sales for April, dealers said. The disappointing U.S. retail sales data raised concerns over the U.S. economy -- the largest in the world -- prompting currency traders in the region to pick up non-U.S. dollar currencies, including the Taiwan dollar, the dealers said. The losses incurred by the U.S. dollar, however, were capped by the local central bank's intervention, which helped the currency recoup most of its earlier downturn by the close, they added. The greenback opened at the day's high of NT$30.780 and moved to a low of NT$30.532 before rebounding. Turnover totaled US$647 million during the trading session. The U.S. dollar opened flat against the Taiwan dollar, but soon fell into negative territory as traders here heeded the poor retail sales data released by Washington overnight by raising their holdings in the local currency, the dealers said. The U.S. retail sales for April stayed flat from a month earlier, shy of an earlier market estimate of a 0.5 percent increase. The weak data weighed on the U.S. dollar against the euro overnight and continued to affect the greenback's movement in the region Thursday. The South Korean won posted the largest gains against the U.S. dollar in two months after the latest U.S. economic data, which gave a strong indication to traders here to chase the Taiwan dollar, as Taipei and Seoul compete fiercely in the global market, the dealers said. The U.S. retail sales report led many traders around the world to suspect that the U.S. Federal Reserve will slow its pace to kick off an interest rate hike cycle, and these expectations hurt market sentiment toward the U.S. dollar, they said. In the late trading session, the local central bank stepped in after it witnessed the U.S. dollar fall below the NT$30.60 mark at one point. The central bank buying helped to vault the greenback back to that level at the close, the dealers said.
Turnover in the local foreign exchange market remained moderate as many traders stayed on the sidelines awaiting the producer price index data in the U.S., due later in the day, for more clues about the U.S. economy, the dealers said. (By Pan Chi-i and Frances Huang)


Updated : 2021-09-17 22:11 GMT+08:00