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

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

Taipei, Sept. 4 (CNA) The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.032 to close at NT$32.833, on moderate trading volume as many traders stayed on the sidelines ahead of the release of the U.S. non-farm payroll report for August, dealers said. Taiwan's central bank, as it has done regularly in recent sessions, jumped into the trading floor and bought into the U.S. dollar, helping the currency recoup its earlier losses to end above the previous closing level, they said. The greenback opened at NT$32.806, and moved between NT$32.516 and NT$32.836 before the close. Turnover totaled US$703 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 fell to negative territory as traders pocketed the gains they built on the back of the local central bank's intervention seen Thursday, dealers said. After bouncing back, the Taiwan dollar fell into consolidation mode for the rest of the session amid cautious sentiment as traders were anxiously waiting for the upcoming U.S. job report due later in the day, they said. The job report is expected to serve as one of the important factors the Fed will take into account before the board members of the U.S. central bank will meet in a meeting scheduled for Sept. 16-17 for a possible adjustment on the monetary policy, dealers said. With the U.S. economy expanding at a stunning pace of 3.7 percent, beating a market forecast of a 3.2 percent rise, fears have been rising that the Fed will kick off an interest rate hike cycle in September, they said. The close of the financial markets in China with no trading of the Chinese yuan gave little indication to traders here throughout the session, also keeping trading volume in the local foreign exchange market moderate, dealers said. After the U.S. dollar fell below the NT$32.60 mark at one point, the local central bank stepped in and its intervention appeared more visible in the late trading session to vault the greenback back that level and even rose above NT$32.80 at the close, dealers said. The central bank's intervention is expected to continue to make the Taiwan dollar even cheaper at a time when Taiwanese exporters have been suffering a decline in outbound sales amid weakening global demand, they said. (By Tsai Yi-chu and Frances Huang)


Updated : 2021-09-25 11:52 GMT+08:00