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

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

Taipei, March 4 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.078 to close at NT$33.101 as further foreign inflows gave an additional boost to the local currency, dealers said.

Foreign funds also flew into other countries in the region, sparking buying in other regional currencies, which gave a hint to traders here to raise their holdings in the Taiwan dollar, pushing down the U.S. dollar, they said.

Strong buying by foreign institutional investors in the local equity market added downward pressure on the U.S. dollar until the local central bank stepped in to help the U.S. currency recoup most of its earlier losses at the close, they added.

The greenback opened at NT$32.960, and moved to a low of NT$32.800 before rebounding to the day's high at the close. Turnover totaled US$1.366 billion during the trading session.

The U.S. dollar opened lower against the Taiwan dollar as traders took cues from a move by foreign investors to remit funds into Taiwan and other countries in the region to buy into the local currency throughout the session, dealers said.

Compared with some of other economies in the region, Taiwan's interest rates were relatively higher, and under such circumstances, foreign investors tended to move funds into Taiwan, they said.

The strength of other regional currencies, such as the South Korean won and the Chinese yuan, also buoyed by foreign fund inflows into the region, led traders here to pocket more Taiwan dollars. Traders were optimistic that central bankers in the region will continue to inject liquidity into the market to support the regional economy, dealers said.

At home, the continued gains posted by equities in the wake of foreign institutional buying lifted the willingness of traders here to hold the Taiwan dollar. According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$6.63 billion (US$200 million) worth of shares on the main board Friday after a net buy of NT$14.47 billion recorded on Thursday.

The U.S. dollar fell below the NT$33 mark at one point before the local central bank intervened to push the currency back up to that level at the close. It was the second consecutive session for the greenback to drop below NT$33 during the trading session before a recovery later in the session. (By Tasi Yi-chu and Frances Huang)

Updated : 2021-10-29 01:08 GMT+08:00