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

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

Taipei, Nov. 4 (CNA) The U.S. dollar fell against the Taiwan dollar Wednesday, shedding NT$0.030 to close at NT$32.595 in the wake of foreign fund inflows into the region that triggered buying in regional currencies, including the local unit, dealers said. Selling in the U.S. dollar also resulted from a soaring equity market in Taiwan, where foreign institutional investors bought aggressively before Taiwan's central bank entered the trading floor to limit the losses suffered by the U.S. currency, the dealers said. It was the fourth consecutive session in which the U.S. dollar had depreciated against the Taiwan dollar. The greenback opened at the day's high of NT$32.610 and moved to a low of NT$32.320 before rebounding. Turnover totaled US$640 million during the trading session. The U.S. dollar opened lower against the Taiwan dollar and selling escalated to push down the unit to the day's low as traders here took cues from fund inflows by foreign investors into the local market, the dealers said. On the back of the fund inflows, foreign institutional investors rushed to buy into local equities, a move that boosted demand for the Taiwan dollar, they said. According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$21.73 billion (US$667 million)-worth of shares on the local main board, sending the weighted index up 1.65 percent at the close. Buying in the local equity market was sparked by hopes of closer cross Taiwan-Strait ties after the Presidential Office announced a day earlier that President Ma Ying-jeou (???) will meet with Chinese President Xi Jinping (???) in Singapore Nov. 7. Before the local central bank stepped in, losses suffered by the U.S. dollar were limited to some extent by a move by the People's Bank of China to lower the Chinese yuan's reference rate against the U.S. dollar, the dealers said. With the U.S. dollar falling below the NT$32.40 mark, the central bank made its intervention more visible to push up the greenback back to a level closer to NT$32.60 by the close, they said. As long as foreign investors continue to move more funds into the local market, central bank buying in the U.S. dollar will continue, in a bid to protect Taiwanese exporters, they added. (By Chiu Po-sheng and Frances Huang)


Updated : 2021-09-20 16:35 GMT+08:00