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

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

Taipei, Sept. 24 (CNA) The U.S. dollar rose against the Taiwan dollar Thursday, gaining NT$0.010 to close at the day's high of NT$33.260, ending above the NT$33 level for the second consecutive session, dealers said. The strength of the U.S. dollar reflected further outflows of foreign funds, while the local central bank's continued intervention to prop up the U.S. unit helped boost the currency, particularly late in the session, dealers said. The U.S. dollar maintained its momentum from the previous four sessions, rising to a six-and-a-half-year high Thursday. The greenback opened at NT$33.255, and moved to a low of NT$32.858 before rebounding. Turnover totaled US$1.317 billion during the trading session. The U.S. dollar dropped soon after the local foreign exchange market opened as traders here took advantage of the local central bank's efforts in the previous session and locked in their gains, dealers said. After falling below the NT$33 mark, however, the U.S. dollar moved in a narrow range for most of the trading session amid concerns over the global economic climate and China's disappointing manufacturing data, dealers said. Before the central bank's intervention, the Taiwan dollar rebounded weakly amid continued fund outflows and fears over further volatility in the global financial market, dealers said. The downturn on the local equity market also capped the gains posted by the Taiwan dollar, dealers said. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$7.3 billion (US$219 million) worth of shares on the main board, sending the weighted index down 0.85 percent at the close Thursday. After the U.S. dollar fell below the NT$33 level, Taiwan's central bank intensified its efforts to dump the Taiwan dollar and help the U.S. currency recover, dealers said. It is believed that the central bank's efforts to keep the Taiwan dollar cheaper are being motivated by a weaker South Korean won, amid fierce completion in the global market, dealers said. (By Tsai Yi-chu and Frances Huang)


Updated : 2021-02-28 12:41 GMT+08:00