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

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

Taipei, Sept. 17 (CNA) The U.S. dollar fell against the Taiwan dollar Thursday, shedding NT$0.100 to close at NT$32.662 as the local equity market continued its momentum, pushing up demand for the local currency throughout the session, dealers said. Foreign fund inflows into the country placed more downward pressure on the U.S. dollar amid reduced fears over a possible interest rate hike by the U.S. Federal Reserve later in the day, the dealers said. Still, the losses suffered by the U.S. dollar were capped by further intervention by Taiwan's central bank in a bid to slow the pace of the Taiwan dollar's appreciation and protect Taiwanese exporters, they added. The greenback opened at the day's high of NT$32.762 and moved to a low of NT$32.350 before rebounding. Turnover totaled US$742 million during the trading session. The U.S. unit opened flat against the Taiwan dollar but soon encountered selling to fall into negative territory as traders here were motivated by a strong rebound on the equity market to raise their holdings in the local currency, the dealers said. Massive foreign institutional buying in the local equity market boosted demand for the Taiwan dollar and imposed heavy losses on the U.S. dollar, they said, adding that the aggressive buying resulted from inflows of foreign funds into the region, including the Taiwan market. According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$11.88 billion (US$364 million)-worth of shares on the local main board, sending the weighted index up 1.34 percent at the close Thursday. Other regional currencies also posted gains against the U.S. dollar as expectations were dampened that the U.S. Fed will raise its key interest rates after wrapping up a two-day policymaking meeting later in the day, the dealers said, adding that the strength of other regional currencies gave another boost to the Taiwan dollar. The reduced hopes about a rate hike came after Washington reported a 0.1 percent decline in the August consumer price index, the first drop in seven months, and the latest CPI data showed that the U.S. faced no inflationary pressure and that the Fed is in no hurry to push up interest rates, they said. After the U.S. dollar fell below the NT$32.4 mark at one point, Taiwan's central bank stepped in to prop up the greenback and help the currency return to breach that level, and even move closer to NT$31.70 at the close, the dealers said. (By Tsai Yi-chu and Frances Huang)


Updated : 2021-09-24 02:34 GMT+08:00