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

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

Taipei, Oct. 28 (CNA) The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.010 to close at NT$32.686 as trade remained moderate amid cautious sentiment before the end of the U.S. Federal Reserve's two-day policymaking meeting later in the day, dealers said. Taiwan's central bank bought into the U.S. dollar, as it has been doing in almost every session recently, helping the currency recoup its early losses and finish above the previous close, dealers said. The greenback opened at the day's high of NT$32.710, and moved to a low of NT$32.400 before rebounding. Turnover totaled US$707 million during the trading session. The U.S. dollar staged a mild technical rebound against the Taiwan dollar but soon dipped into negative territory and kept moving in a narrow range amid lingering concerns over a possible change in the Fed's monetary policy, dealers said. While many traders at home and abroad generally anticipate that the Fed will leave its key interest rate unchanged this year due to a series of disappointing economic data, traders preferred to stay on the sidelines, which kept foreign exchange trading volume moderate, dealers said. U.S. data released overnight showed a drop in consumer confidence from 102.6 in September to 97.6 in October, below the market estimate of 103.5. Dealers said that while the market does not expect U.S. interest rates to rise until around March, traders are still cautious. Other currencies in the region remained slow, fluctuating in a small range and giving few leads to traders here on how to map out their investment strategies, dealers said. Before the local central bank's intervention, the U.S. dollar's losses were limited in the wake of a further drop on the local equity market, dealers said. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$1.17 billion (US$35.80 million) worth of shares on the local main board, sending the weighted index down 0.41 percent at the close Wednesday. (By Chiu Po-sheng and Frances Huang)


Updated : 2021-09-21 11:37 GMT+08:00