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

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

Taipei, July 14 (CNA) The U.S. dollar rose against the Taiwan dollar Tuesday, gaining NT$0.102 to close at the day's high of NT$31.302 amid renewed fears that the U.S. Federal Reserve will kick off an interest rate hike cycle, dealers said. Traders have shifted their focus to the Fed's future move from concerns over the debt problems in Greece after the European country reached an agreement with its creditors Monday to resolve its debt crisis, they said. The greenback opened at NT$31.260, and moved to a low of NT$31.005 before rebounding. Turnover totaled US$923 million during the trading session. The U.S. dollar opened higher on a mild technical rebound from its losses incurred a day earlier, but soon dipped into the red against the Taiwan dollar as traders here took cues from the extended gains on the local equity market to buy into the local currency, dealers said. But, the gains posted by the Taiwan dollar were capped to some extent after the upturns in the local main board were eroded as equity investors locked in their earlier gains, which discouraged currency traders from raising more of the local currency, they said. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$143.84 million (US$4.60 million) worth of local shares on the main board Tuesday with the weighted index closing little changed. In the late trading session, the U.S. dollar regained its strength after traders were motivated by the weakness of the South Korean won, which fell to a two-year low against the greenback to dump the Taiwan dollar, dealers said. The lower won reflected worries over the Fed's move to start to raise its key interest rate, while concerns over the debt crisis in Greece were assuaged by the agreement inked with its creditors, they said. After witnessing a falling won, Taiwan's central bank entered the market in the late session, again, to drag down the Taiwan dollar further in a bid to keep the local currency cheaper and protect Taiwan's exports, dealers said. Traders tend to closely watch the won's movements before mapping out their strategies to trade the Taiwan dollar since Taipei and Seoul compete fiercely in the global market, dealers added. (By Frances Huang)


Updated : 2021-09-16 19:44 GMT+08:00