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

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

Taipei, Sept. 11 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.146 to close at NT$32.710 after the local currency tracked the Chinese yuan to move higher, dealers said. Trading volume in the local foreign exchange market remained moderate as traders here stayed on the sidelines ahead of a policymaking meeting scheduled by the U.S. Federal Reserve for next week, although Taiwan's central bank continued its intervention to slow down the pace of the Taiwan dollar's appreciation, they said. The greenback opened at the day's high of NT$32.856, and moved to a low of NT$32.335 before rebounding. Turnover totaled US$714 million during the trading session. The U.S. dollar opened flat against the Taiwan dollar, but soon faced downward pressure as traders here rushed to pick up the local currency in the wake of a rebound staged by the yuan, dealers said. The yuan's offshore trading rate bounced back by 1 percent against the U.S. dollar at one point after several Chinese state-owned banks aggressively bought into the Chinese currency, they said. The 1 percent gain was the largest daily increase for the yuan's offshore trading rate in history. The higher yuan also reflected a move by the People's Bank of China to raise the currency's reference rate against the greenback, dealers said. The strength of the yuan gave a strong hint to traders in the region to pick up other regional currencies, in particular the South Korean won, which rose 1 percent at one point against the U.S. dollar after the Bank of Korea left its key interest rates unchanged, they said. As traders here track the won closely before mapping out strategies to trade the Taiwan dollar, they simply followed the Korean currency to give another boost to the local currency before the local central bank stepped in, dealers said. After witnessing the U.S. dollar fall below the NT$32.40 mark, intervention of Taiwan's central bank appeared more visible to help the greenback recover part of its earlier losses and closed above the NT$32.70 level, they said. Market sentiment remained cautious toward the U.S. dollar's movement prior a two-day Fed meeting which will start on Sept. 16, waiting for the U.S. central bank's decision on whether to raise interest rates or not, dealers said. (By Chiu Po-sheng and Frances Huang)


Updated : 2021-09-22 11:42 GMT+08:00