Alexa
  • Directory of Taiwan

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

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

Taipei, May 29 (CNA) The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.070 to close at NT$30.871 on the back of further intervention by the local central bank to prop up the greenback, dealers said. The central bank's buying offset the impact on the U.S. dollar resulting from the strength of other regional currencies at a time when the U.S. currency suffered a retreat due to technical factors, they said. The U.S. dollar fell to a low since April 24, when the currency closed at NT$31.051. The greenback opened at NT$30.820, and moved between NT$30.622 and NT$30.875 before the close. Turnover totaled US$1.304 billion during the trading session. The U.S. dollar opened higher against the Taiwan dollar on follow-through buying from a session earlier, but soon fell to negative territory as traders here were encouraged by the gains posted by several regional currencies, including the Japanese yen, to raise their holdings in the local currency, dealers said. Interest in the Taiwan dollar also reflected rising fund demand with the end of May approaching as many Taiwanese exporters rushed to sell their U.S. dollars in exchange for the local currency, they said. Before the central bank jumped into the trading floor to prevent the U.S. dollar from falling further, foreign institutional selling in the local equity market let some air out of the Taiwan dollar, dealers said. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$300.41 million (US$9.73 million) worth of local shares on the main board. After aggressive buying of the U.S. dollar Thursday, the local central bank continued its strong intervention Friday, in a bid to slow down the pace of the Taiwan dollar's appreciation as weakening global demand has been hurting the country's exports, dealers said. Sentiment toward the U.S. dollar's movement remained cautious ahead of the release of the revised U.S. economic growth data for the first quarter, which could serve as an indication to how Federal Reserve will adjust its monetary policy, they said. (By Frances Huang)


Updated : 2021-09-18 07:32 GMT+08:00