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

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

Taipei, May 19 (CNA) The U.S. dollar rose against the Taiwan dollar Tuesday, gaining NT$0.030 to close at the day's high of NT$30.640 after local central bank buying in the greenback vaulted the currency back into positive territory at the end of the session, dealers said. The gains posted by the U.S. dollar stopped a four-session losing streak for the currency. The central bank's intervention assuaged the impact on the U.S dollar resulting from strong demand for the Taiwan dollar due to a rising equity market, while the intervention also offset selling in the U.S. dollar caused by concerns over the U.S. economy, the largest in the world, the dealers said. The greenback opened at NT$30.620 and moved to a low of NT$30.430 before rebounding. Turnover totaled US$598 million during the trading session. The U.S. dollar opened higher against the Taiwan dollar on a technical rebound, but soon dipped into the red as traders here heeded a strong comeback by the local bourse on the back of massive foreign buying, the dealers said. According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$9.78 billion (US$319 million)-worth of local shares on the main board, boosting the weighted index by 1.15 percent at the close. Strong foreign buying in the local equity market sparked demand for the Taiwan dollar and triggered a sell-off in the U.S. dollar during most of the trading session. The U.S. dollar also came under pressure amid lingering concerns over the U.S. economic climate after data released overnight showed that the confidence index among U.S. homebuilders unexpectedly fell to 54 in May from April's 56, the dealers said. Monday's data was just the latest of several disappointing economic reports. These reports have prompted traders in the region to think that the U.S. Federal Reserve will slow the pace of interest rate hikes, which dragged down the greenback. The U.S. dollar fell below the NT$30.50 mark at one point before the central bank stepped in to boost the currency back to that level at the close, at a time when many Taiwanese exporters warned that a stronger Taiwan dollar will hurt the country's exports, the dealers said. (By Pan Chi-i and Frances Huang)


Updated : 2021-09-26 03:43 GMT+08:00