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

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

Taipei, Aug. 21 (CNA) The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.198 to close at the day's high of NT$32.876, as the local currency come under pressure from a plunge in Taiwan's equity market, dealers said. The Taiwan dollar was also hurt by weakness in China's manufacturing sector and intervention by Taiwan's central bank to further prop up the U.S. dollar late in the session. The greenback opened at NT$32.710, and moved to a low of NT$32.560 before rebounding. Turnover totaled US$1.10 billion during the trading session. The U.S. currency opened higher against the Taiwan dollar on follow-through buying, but fell into negative territory as the local currency staged a mild technical rebound before a sell-off in Taiwan's stock market reversed the greenback's fortunes. According to the Taiwan stock exchange, foreign institutional investors sold a net NT$7.33 billion (US$223 million) in shares in Taipei Friday, dumping large-cap stocks in the electronics and financial sectors to send the weighted index down 3.02 percent at the close. The dive in share prices prompted currency traders to cut their holdings in the Taiwan dollar, increasing demand for the U.S. dollar, dealers said. The weakness of other regional currencies resulting from rising concerns over China's economy gave traders here another reason to sell the Taiwan dollar, they said. Worries over the pace of the China's economic growth were reinforced by a report Friday that China's factory sector contracted at its fastest pace in more than six years in August amid declining demand both at home and abroad. Seizing on the weakness of other regional currencies, such as the South Korean won, Taiwan's central bank stepped in again to buy into the U.S. dollar, sending the Taiwan dollar even lower at the close, dealers said. Because of the currency depreciation competition that continues to rage in the region, Taiwan's central bank is expected to continue its intervention to make the Taiwan dollar even cheaper and help exporters remain competitive in global markets, dealers said. (By Frances Huang)


Updated : 2021-09-17 19:19 GMT+08:00