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

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

Taipei, July 16 (CNA) The U.S. dollar rose against the Taiwan dollar Thursday, gaining NT$0.038 to close at NT$31.310 on expectations that the U.S. Federal Reserve will kick off an interest rate hike cycle later this year, dealers said. Such hopes have been reinforced by Fed Chair Janet Yellen's congressional testimony overnight, which reaffirmed the U.S. central bank's intention to raise interest rates this year, they said. The greenback opened at NT$31.300, and moved between NT$31.070 and NT$31.315 before the close. Turnover totaled US$683 million during the trading session. The U.S. dollar opened higher against the Taiwan dollar on follow-through buying, but soon dipped into negative territory in the wake of an initial technical rebound staged by the local equity market after the Greek parliament passed a bailout agreement signed with the country's creditors, dealers said. The earlier buying of the Taiwan dollar also showed that the local currency bounced back due to the presence of Taiwan's central bank a day earlier to prop up the U.S. dollar, they said. However, the Taiwan dollar's momentum started to fade later in the session after traders here heeded the weakness of other regional currencies, such as the South Korea won and the Japanese yen, and shifted to the sell side, dealers said. The losses suffered by other regional currencies resulted from expectations of a rate hike by the Fed after Yellen's testimony in the U.S. House, dealers said, adding that it is possible for the U.S. central bank to raise interest rates in September, a move which could lend more support to the greenback in the future. Spurred by the drop in the won and the yen, the local central bank stepped into the trading floor, again, to place more downward pressure on the Taiwan dollar and give a boost to the U.S. dollar in the late trading session, dealers said. Yellen is scheduled to continue her testimony in the Senate Thursday. (By Frances Huang)


Updated : 2021-09-18 14:18 GMT+08:00