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

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

Taipei, July 17 (CNA) The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.002 to close at NT$31.312 after the central bank continued its efforts to prop up the greenback and help the currency recoup all of its earlier losses, dealers said. The moderate turnover showed that sentiment remained cautious, keeping many traders on the sidelines to await upcoming consumer price index and consumer sentiment data due to be released in Washington later in the day, the dealers said. The greenback opened at NT$31.315 and moved between NT$31.070 and NT$31.317 before the close. Turnover totaled US$734 million during the trading session. The U.S. dollar extended the strength it showed in the latter part of the previous day's session to open higher against the Taiwan dollar, but soon fell into the red in the wake of the strength of other regional currencies, in particular the South Korean won, the dealers said. The won, which the Taiwan dollar tracks closely due to trade competition between Taipei and Seoul, staged a technical rebound Friday from a slump recorded a session earlier. The won's gains gave a strong indication to traders here to buy into the Taiwan dollar, the dealers said. Foreign institutional buying in the local equity market added downward pressure on the U.S. dollar before the local central bank's intervention, they said. According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$3.34 billion (US$107 million)-worth of local shares on the main board Friday. After the U.S. dollar fell below the 31.20 mark from the previous close of NT$31.310, the central bank's presence became more visible, vaulting the currency back to NT$31.3 at the close in a bid to keep the Taiwan dollar cheaper and protect Taiwan's exports, the dealers said. Many traders stepped off the trading floor ahead of more economic data due later in the day. That data could serve as a barometer to how the U.S. Federal Reserve will adjust its monetary policy, which will move the U.S. dollar, the dealers said. (By Frances Huang)


Updated : 2021-09-25 00:21 GMT+08:00