Alexa
  • Directory of Taiwan

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

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

Taipei, May 21 (CNA) The U.S. dollar fell against the Taiwan dollar Thursday, shedding NT$0.032 to close at NT$30.650 on reduced concerns that the U.S. Federal Reserve will kick off an interest rate hike cycle in June, dealers said. However, the U.S. dollar losses were capped by heavy selling by foreign institutional investors in the local bourse, while the local central bank also intervened late in the trading session to prop up the U.S. currency, dealers said. The greenback opened at the day's high of NT$30.682, and moved to a low of NT$30.452 before rebounding. Turnover totaled US$672 million during the trading session. The U.S. dollar opened flat, but soon fell into negative territory as traders here took cues from the strength of other regional currencies to pick up the Taiwan dollar, dealers said. Interest in the regional currencies was sparked by hopes that the U.S. Fed will further defer an interest rate hike, as indicated in the minutes of the U.S. central bank's policymaking meeting in April, they said. The central bank said it would be premature to raise interest rates in June as the U.S. economy, the largest in the world, was still facing some downside risks. Before the local central bank's intervention Thursday, the U.S. dollar was buoyed by lower demand for the Taiwan dollar as result of a plunge in the local equity market, dealers said. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$12.1 billion (US$395 million) worth of local shares on the main board, sending the weighted index down 1.10 percent. An HSBC report, which showed a continued shrinking of manufacturing activity in China, also helped deflate the currencies in the region, including the Taiwan dollar, dealers said. Late in the trading session, the local central bank stepped in, after the U.S. dollar fell below the NT$30.50 mark at one point. The central bank buying helped vault the greenback back to the NT$30.60 level at the close, as the bank sought to boost Taiwan's exports, dealers said. (By Frances Huang)


Updated : 2021-09-18 15:27 GMT+08:00