TAIPEI (Taiwan News) — The Taiwan dollar strengthened Thursday, reaching its highest level in nearly two weeks as markets continued to absorb foreign capital inflows.

The currency traded above NT$31.4 per US dollar in morning trading, touching a high of NT$31.378. It later pared gains to close at NT$31.46, up NT$0.018 from the previous session, according to CNA.

Total turnover on the Taipei Forex and Cosmos Foreign Exchange markets, Taiwan’s two main interbank trading platforms, reached NT$58.2 billion.

The Taiwan dollar’s gains were partly driven by foreign investors increasing holdings of Taiwanese stocks ahead of an 11-day market closure starting Thursday. Settlement payments, typically collected two business days after trades, boosted activity in the currency market.

Traders said the US dollar index fluctuated in the morning, lending support to major Asian currencies. Exporters’ foreign currency sales ahead of the nine-day Lunar New Year holiday beginning Saturday also added to the gains.

In the afternoon, the US dollar index rebounded and government fund buying picked up, limiting further appreciation of the Taiwan dollar. With Taiwan’s foreign exchange market set to close Friday for the Lunar New Year holiday, trading is expected to remain subdued.