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

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

Taipei, July 29 (CNA) The U.S. dollar fell against the Taiwan dollar Wednesday, shedding NT$0.052 to close at NT$31.523 as the local currency followed its regional counterparts, staging a technical rebound, dealers said.
Taiwan's central bank again entered trading floor to buy into the U.S. dollar in a bid to slow the pace of the Taiwan dollar's appreciation, they said.
Trading volume in the local foreign exchange market remained moderate as many traders stayed on the sidelines, waiting for the conclusion of a U.S. Federal Reserve policymaking meeting later in the day, dealers said.
The gains posted by the Taiwan dollar stopped a four-session rising streak by the U.S. dollar.
The greenback opened at the day's high of NT$31.575, and moved to a low of NT$31.410 before rebounding. Turnover totaled US$668 million during the trading session.
The U.S. dollar opened flat against the Taiwan dollar, but soon dipped into negative territory as traders here were encouraged by the strength of other regional currencies, in particular the South Korean won, to raise their Taiwan dollar holdings, dealers said.
Exporters in the region rushed to buy into their home currencies to meet seasonal fund demand as the month-end approached, dealers said.
A stronger won gave traders here an indication to buy into the Taiwan dollar as the local currency tends to closely follow the Korean unit, dealers said. Traders here tend to map out their currency investment strategies by tracking the won since Taiwan and South Korea are fierce competitors in the global market.
After the U.S. dollar fell below the NT$31.50 mark, the local central bank intervention become more obvious, dealers said. The central bank's buying helped vault the U.S. dollar back to NT$31.50 by the close, a level that the market thinks the central bank wants to maintain in the short term.
Traders who stepped back from the market were watching closely to see what decisions the Fed would make regarding its monetary policy, dealers said. (By Frances Huang)


Updated : 2021-09-24 10:48 GMT+08:00