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

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

Taipei, Oct. 30 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.054 to close at NT$32.802 as traders here, encouraged by the strength of other regional currencies, picked up the local unit, dealers said. Selling in the U.S. dollar was also driven by end-of-month fund demand, until Taiwan's central bank stepped in to prop up the U.S. currency, as it has done almost every session recently, dealers said. The greenback opened at the day's high of NT$32.856, and moved to a low of NT$32.436 before rebounding. Turnover totaled US$783 million during the trading session. The U.S. dollar opened flat against the Taiwan dollar, but soon faced downward pressure in the wake of the gains posted by other regional currencies such as the Japanese yen, dealers said. Interest in the regional currencies, including the Taiwan dollar, emerged after the Bank of Japan decided to hold off on a further stimulus package, a decision that helped boost the yen, dealers said. Funds also flowed into the Taiwan dollar as Taiwanese exporters rushed to buy the local currency to meet month-end demand, dealers said. Before the local central bank's intervention, the U.S. dollar losses were limited to some extent due to a Taiwan government report of negative economic growth in the third quarter. According to the government data, the domestic GDP contracted 1.01 percent year-on-year in the third quarter, the lowest since the second quarter of 2009, when the country's economy fell 1.24 percent from a year earlier amid a global financial crisis. On Friday, foreign institutional selling in the local equity market lent some support to the U.S. dollar, dealers said. According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$314 million (US$9.57 million) worth of shares on the local main board, sending the weighted index down 0.20 percent at the close. (By Chiu Po-sheng and Frances Huang)


Updated : 2021-09-19 23:01 GMT+08:00