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

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

Taipei, Sept. 2 (CNA) The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.082 to close at NT$32.762, after Taiwan's central bank propped up the greenback late in the session, dealers said.
The central bank's intervention allowed the U.S. dollar to fend off selling caused by the strength of other regional currencies, including the South Korean won, a currency that is closely watched by traders in Taiwan, they said.
The U.S. dollar also came under pressure from a rally on Taiwan's stock market, in which foreign institutional investors were net buyers on the day, spurring demand for the local currency, dealers said.
The greenback opened at NT$32.760, and moved between NT$32.425 and NT$32.780 before the close. Turnover totaled US$858 million during the trading session.
The U.S. dollar opened flat against the Taiwan dollar, but soon fell into negative territory as traders here were encouraged by the gains posted by other regional currencies, in particular the Korean won, to buy into the local unit, dealers said.
The upturn of the regional currencies reflected a move by the People's Bank of China (PBOC) to raise the Chinese yuan's reference rate against the U.S. dollar in a bid to stem the yuan's slide, they said.
It was the fourth consecutive session in which the PBOC raised the yuan's reference rate.
On the Taiwan stock exchange, the weighted index closed up 0.22 percent at 8,035.29, recovering from an earlier loss of more than 100 points Wednesday as the bellwether electronics sector attracted bargain hunting.
Foreign institutional investors bought a net NT$98.07 million (US$2.99 million) in local shares, dealers said.
The U.S. dollar fell below the 32.50 mark at one point before Taiwan's central bank stepped in to vault the greenback back above that level and push it closer to NT$32.80 level by the end of the session, dealers said.
They said the central bank's buying of U.S. dollars is expected to continue because of pressure from local business leaders to allow the Taiwan dollar to depreciate further and make the country's exports less expensive. (By Tsai Yi-chu and Frances Huang)


Updated : 2021-09-26 01:58 GMT+08:00