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

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

Taipei, May 27 (CNA) The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.017 to close at NT$30.725 amid worries that the U.S. Federal Reserve will launch an interest rate hike cycle by the end of this year, dealers said. Market sentiment remained cautious as many traders here and around the region were watching closely how the debt problems in Greece will evolve, the dealers said. The greenback opened at NT$30.860 and moved between NT$30.616 and NT$30.870 before the close. Turnover totaled US$890 million during the trading session. The U.S. dollar opened up on strong follow-through buying from the previous session as more and more traders in the local foreign exchange market believe that the Fed is moving toward a rate hike cycle, the dealers said. The U.S. dollar index, which tracks the currencies of Washington's six major trading partners, rose to an eight-year high against the Japanese yen at one point after Fed Chair Janet Yellen over the weekend talked about the possibility of raising key interest rates by the end of the year, they said. The U.S. currency also got a boost from the latest home market data showing that new home sales for April rose 6.8 percent from a month earlier, they added. After taking an initial beating, the Taiwan dollar staged a technical rebound as traders witnessed gains posted by the local equity market, where foreign institutional investors bought a net NT$2.59 billion (US$84.30 million) to push up the weighted index by 0.24 percent at the close, the dealers said. After the rebound, the Taiwan dollar kept moving in a narrow range for most of the trading session, with the local central bank stepping in during the late session to prop up the U.S. dollar, which helped the greenback return into positive territory at the close, they said. Many traders preferred to stay on the sidelines, keeping alert over the debt situation in Greece after the European country said that Athens will not make June's payment to the International Monetary Fund since the money "isn't there to be given," the dealers said. (By Frances Huang)


Updated : 2021-09-26 00:46 GMT+08:00