Alexa
  • Directory of Taiwan

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

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

Taipei, July 3 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.030 to close at NT$31.120 as the United States reported lower-than-expected non-farm payroll data for June overnight, dealers said.
The losses incurred by the U.S. dollar were capped, however, by continued intervention by Taiwan's central bank to slow down the pace of the Taiwan dollar's appreciation, the dealers said.
Despite the local central bank's presence, trading volume on the foreign exchange market remained thin amid lingering concerns over the debt woes in Greece, they added.
The greenback opened at the day's high of NT$31.150 and moved to a low of MT$30.850 before rebounding. Turnover totaled US$513 million during the trading session.
After opening flat against the Taiwan dollar, the U.S. dollar soon encountered downward pressure as traders here took cues from the latest U.S. job data to cut their holdings in the greenback, the dealers said.
The June non-farm payroll data showed that U.S. employers hired 223,000 workers in the month, slightly fewer than 230,000 previously expected by the market. The job report prompted currency traders to think that the U.S. Federal Reserve is in no rush to raise key interest rates, the dealers said.
This gave a boost to most currencies in the region, including the South Korean won, so that traders here were encouraged to buy into the Taiwan dollar throughout the session, they said.
As Taiwan and South Korea compete in the global market, traders here tend to track the won, while mapping out their strategies in Taiwan dollar trading.
After witnessing the U.S. dollar falling below the NT$31 mark, the local central bank stepped in again to vault the greenback back to that level at the close, the dealers said.
Market sentiment remained cautious, as many traders preferred to stay on the sidelines ahead of a referendum scheduled by Greece for June 5 to decide whether the country will accept the conditions set by its creditors, they said.
There have been rising concerns that if people in Greece say no, it will raise the possibility of the country leaving the eurozone, they said. (By Wei Shu and Frances Huang)


Updated : 2021-09-21 13:40 GMT+08:00