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

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

Taipei, July 21 (CNA) The U.S. dollar rose against the Taiwan dollar Tuesday, gaining NT$0.065 to close at NT$31.407 as currencies across the region entered a depreciation competition, dealers said.
Taiwan's central bank intervened late in the session to keep the greenback stronger against the local currency and help Taiwanese exporters stay competitive at a time when the country's exports are showing signs of weakening, they said.
It was the fourth consecutive session in which the U.S. dollar registered gains against the Taiwan dollar with the help of central bank intervention.
The greenback opened at the day's high of NT$31.435, and moved to a low of NT$31.193 before rebounding. Turnover totaled US$732 million during the trading session.
The U.S. dollar opened higher against the Taiwan dollar on follow-through buying but soon dipped into the red as traders here acted on a technical rebound staged by Taiwan's stock market to increase their holdings of the local currency, dealers said.
The technical rebound was spurred by foreign institutional buying of local shares, boosting demand for the Taiwan dollar, they said.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$5.09 billion (US$162 million) in local shares on the main board Tuesday after a net buy of NT$3.28 billion on Monday.
Taiwan's central bank seized on the weakness of other regional currencies, especially the South Korean won, to step in late in the session and sell the Taiwan dollar for the U.S. dollar, dealers said.
The falling won, which lost 0.7 percent against the U.S. dollar at one point after the government in Seoul raised concerns over second quarter economic growth, gave Taiwan's central bank a good reason to drag down the Taiwan dollar's value, dealers said.
Further intervention by Taiwan's central bank is possible after the country reported a 5.8 percent year-on-year decline in export orders in June, which has raised concerns about the export-oriented country's outbound sales, they said. (By Frances Huang)


Updated : 2021-09-28 14:59 GMT+08:00