US dol­lar ends at NT$31.766 on Taipei forex

The China Post - - TAIWAN BUSINESS -

The U.S. dol­lar rose against the Tai­wan dol­lar Tues­day, gain­ing NT$0.005 to close at NT$31.766 after the green­back moved in a nar­row range through­out the ses­sion on re­duced for­eign trader par­tic­i­pa­tion, deal­ers said.

The lo­cal cen­tral bank stepped in to prop up the U.S. dol­lar, help­ing the cur­rency off­set the im­pact of a strong Ja­panese yen and a net buy by for­eign in­sti­tu­tional in­vestors in the lo­cal bourse, they said.

The green­back opened at NT$31.780 and moved be­tween NT$31.704 and NT$31.784 be­fore the close. Turnover to­taled US$646 mil­lion dur­ing the trad­ing ses­sion.

The U.S. dol­lar opened higher on follow-through buy­ing from a ses­sion ear­lier but soon faced down­ward pres­sure as traders took cues from the gains posted by the yen, deal­ers said.

Buy­ing flocked to the yen as traders in the re­gion per­ceived the cur­rency as a safe haven at a time when the Tokyo mar­ket suf­fered a plunge of about 1.60 per­cent, and the higher yen gave a strong in­di­ca­tion to traders here to buy into the Tai­wan dol­lar, they said.

In the lo­cal bourse, for­eign in­sti­tu­tional in­vestors con­tin­ued to stand on the buy side to buy a net NT$2.39 bil­lion (US$75.24 mil­lion) worth of lo­cal shares, which lent fur­ther support to the Tai­wan dol­lar, they added.

In ad­di­tion, with the year com­ing to an end, lo­cal ex­porters bought more of the Tai­wan dol­lar dur­ing the ses­sion in a bid to meet sea­sonal fund de­mand, deal­ers said, adding that such buy­ing is ex­pected to con­tinue into the last day of 2014 Wed­nes­day.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.