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

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

Taipei, May 15 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.069 to close at NT$30.612 after a fall in the U.S. producer price index for April prompted traders in Taiwan to dump the greenback throughout the session, dealers said. The contraction in the U.S. index led traders to believe that the U.S. Federal Reserve would hold back on raising interest rates, adding pressure to the U.S. dollar, they said. Further fund inflows into Taiwan also drove selling in the U.S. dollar until Taiwan's central bank intervened late in the session, helping the currency recoup most of its early losses by the close, dealers said. It was the third consecutive session in which the U.S. dollar lost ground against the Taiwan dollar. The greenback opened at the day's high of NT$30.685, and moved to a low of NT$30.444 before rebounding. Turnover totaled US$816 million during the trading session. The U.S. dollar opened higher against the Taiwan dollar on a mild technical rebound, but soon dipped into negative territory following the release of the latest PPI data in Washington, dealers said. The April PPI fell 0.3 percent from a month earlier, falling short of the slight increase expected by economists. The data indicated that the U.S. is not facing inflationary pressures, leaving the Fed without much of a reason to increase rates, dealers said. As a result, the U.S. dollar continued to slump against other currencies overnight and fell further in Asia on Friday morning amid optimism over possible inaction by the Fed, they said. Although Taiwan's stock market came under pressure, foreign institutional investors moved funds into Taiwan on Friday, giving the Taiwan dollar an additional boost, dealers said. The greenback fell below the NT$30.50 mark at one point before the central bank stepped in to prop up the currency and protect Taiwanese exporters in the global market, dealers said, adding that NT$30.50 could be the central bank's bottom line in the near term. (By Pan Chi-I and Frances Huang)


Updated : 2021-09-24 10:44 GMT+08:00