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

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

Taipei, Sept. 23 (CNA) The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.279 to close at NT$33.250 after the greenback recovered from earlier losses on the back of support from Taiwan's central bank, dealers said. The local central bank's intervention offset the impact of the weakness of other regional currencies, which felt the pinch of disappointing manufacturing activity in China, the dealers said. It was the first time the U.S. dollar had closed above the NT$33 mark since Sept. 8, when the currency ended at NT$33.003. The greenback opened at NT$32.986 and moved between NT$32.700 and NT$33.256 before the close. Turnover totaled US$1.193 billion 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 into negative territory as traders here locked in profits seen a day earlier due to the local central bank's support, the dealers said. After the rebound, the Taiwan dollar moved in a narrow range for most of the rest of the session amid concerns over China's economy -- the second-largest in the world -- after the mainland reported disappointing manufacturing activity data for September. The preliminary Caixin/Markit China manufacturing purchase manager index (PMI) fell 47.0 for September, falling from a final reading of 47.3 recorded in August and missing an earlier market estimate of 47.5. The September PMI was the lowest level in six-and-a-half years in China. The falling PMI in China led traders in the region to dump regional currencies, in particular the South Korean won, which reduced the effect of a technical rebound staged by the Taiwan dollar, the dealers said. Fund outflows from Taiwan also helped the U.S. dollar to fend off downward pressure against the Taiwan dollar after the weighted index closed down 2.06 percent Wednesday. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$15.72 billion (US$473 million)-worth of local shares on the main board during the trading session. In the latter part of the session, the central bank jumped onto the trading floor to reverse the downturn suffered by the U.S. dollar by taking cues from the weakening won in a bid to keep the Taiwan dollar cheaper and protect Taiwanese exporters. (By Tsai Yi-chu and Frances Huang)


Updated : 2021-04-14 10:55 GMT+08:00