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

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

Taipei, Sept. 1 (CNA) The U.S. dollar fell against the Taiwan dollar Tuesday, shedding NT$0.130 to close at NT$32.680 as China intensified its efforts to stem a further slide in the Chinese yuan, encouraging buying in regional currencies, dealers said. The losses suffered by the U.S. dollar were limited, however, by intervention from Taiwan's central bank to keep the Taiwan dollar cheaper and protect Taiwanese exporters, they said. The gains posted by the Taiwan dollar stopped a three-session winning streak registered by the U.S. dollar. The greenback opened at NT$32.815, and moved between NT$32.315 and NT$32.820 before the close. Turnover totaled US$836 million during the trading session. The U.S. dollar opened higher against the Taiwan dollar on follow-through buying from a session earlier, but soon faced downward pressure as traders here picked up the local unit after seeing the strength of other regional currencies, dealers said. Buying in the regional currencies resulted from a decision by the People's Bank of China (PBOC), China's central bank, to raise the yuan's reference rate against the U.S. dollar by 0.22 percent, an effort to boost the yuan's exchange rate, they said. It was the third consecutive day in which the PBOC hiked the yuan's reference rate against the greenback. Witnessing a higher yuan, other regional currencies moved up accordingly, with the South Korean won hitting a three-week high at one point. The gains enjoyed by the won, which is closely tracked by traders in Taiwan before deciding their foreign exchange trading strategies, gave a big boost to the local unit, dealers said. The Taiwan dollar remained strong even as the country's stock market tumbled. The Taiwan stock exchange's weighted index closed down 1.92 percent at 8,017.56 after foreign institutional investors sold a net NT$5.38 billion (US$165 million) in local shares on the main board Tuesday. The U.S. dollar fell below the NT$32.40 level and even moved closer to NT$32.3 at one point before the local central bank intervened late in the session to prop up the currency, dealers said. The central bank's intervention is expected to continue as Taiwan is trying to boost exports at a time when global demand is weakening, they said. (By Pan Chi-i and Frances Huang)


Updated : 2021-09-27 03:23 GMT+08:00