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U.S. dollar closes higher on Taipei forex

U.S. dollar closes higher on Taipei forex

The U.S. dollar rose against the Taiwan dollar Saturday, gaining NT$0.050 to close at NT$33.650 after moving in a narrow range on thin trading, dealers said.

The low turnover resulted in part from the absence of many foreign traders during the rare Saturday session, held to make up for the loss of a work day during the extended Lunar New Year holiday that starts on Feb. 6, they said.

Taiwan's central bank intervened to prop up the U.S. dollar and help the greenback recoup earlier losses and close above the previous day's closing level, dealers said.

The greenback opened at NT$33.560, and moved between TN$33.350 and NT$33.670 before the close. Turnover totaled US$275 million during the trading session.

The U.S. dollar opened lower against the Taiwan dollar on follow-through selling from a session earlier, and the downward momentum continued as local exporters sustained their selling of the greenback in exchange for Taiwan dollars to meet seasonal fund demand, dealers said. Foreign institutional investors' net purchase of NT$2.57 billion (US$76.37 million) in shares on Taiwan's stock market Saturday also put downward pressure on the U.S. dollar.

Sluggish demand for the greenback was somewhat offset by the U.S. dollar's technical rebound in international markets, and intervention by Taiwan's central bank late in the session to protect Taiwan's export competitiveness vaulted the U.S. dollar back into positive territory at the close, dealers said.

The low turnover made it relatively easy for the central bank to drive down the value of the Taiwan dollar, they said.

Updated : 2021-04-22 01:23 GMT+08:00