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

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

Taipei, July 1 (CNA) The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.030 to close at NT$31.100 on moderate turnover ahead of a referendum scheduled by debt-ridden Greece for Sunday, dealers said. Taiwan's central bank again jumped onto the trading floor to prop up the U.S. dollar and help the currency recoup its earlier losses at the close in a bid to protect Taiwanese exporters, the dealers said. The greenback opened at NT$31.080 and moved between NT$30.843 and NT$31.108 before the close. Turnover totaled US$637 million during the trading session. The U.S. dollar opened higher against the Taiwan dollar, but soon faced downward pressure as traders here rushed to take advantage of the local central bank's intervention in buying the greenback, the dealers said. The weakness of the U.S. dollar also reflected a move by foreign institutional investors to buy shares on the local main board, which gave a boost to the Taiwan dollar during the session, they said. According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$1.43 billion (US$45.98 million)-worth of shares Wednesday to raise demand for the Taiwan dollar. In the late trading session, the central bank took cues from weaknesses in other regional currencies such as the Japanese yen and the South Korea won to raise its holdings in the U.S. dollar, vaulting the greenback back to the NT$31 mark, a level the market believed the bank wanted to maintain in the short term, the dealers said. Market sentiment remained cautious as traders here were wary of the debt situation in the eurozone after Greece announced that it will hold a referendum to decide whether its people will accept the conditions set by the country's creditors, they said. As Greece defaulted on its debt repayment to the International Monetary Fund by the deadline of June 30, concerns have been growing that the debt condition in the European country will deal a blow to the economic climate in Europe and even the world, they added. (By Frances Huang)


Updated : 2021-09-27 21:21 GMT+08:00