US dollar dips to NT$31.303 on Taipei forex due to rate hike fear

The China Post - - TAIWAN BUSINESS -

The U.S. dollar fell against the New Tai­wan dollar Thurs­day, shed­ding NT$0.059 to close at NT$31.303 as fears over an in­ter­est rate hike by the U.S Fed­eral Re­serve faded to some ex­tent af­ter the lat­est dis­ap­point­ing eco­nomic data re­leased in the United States overnight, deal­ers said.

Sell­ing in the U.S. dollar in­creased as traders here took cues from the strength of other re­gional cur­ren­cies, in par­tic­u­lar the South Korean won — which the New Tai­wan dollar closely tracks — to buy into the lo­cal unit, the deal­ers said.

How­ever, the losses suf­fered by the U.S. dollar were limited by the lo­cal cen­tral bank’s in­ter­ven­tion to as­suage the im­pact of the New Tai­wan dollar’s ap­pre­ci­a­tion in a bid to boost ex­ports, they added.

The green­back opened at the day’s high of NT$ 31.362 and moved to a low of NT$31.201 be- fore re­bound­ing. Turnover to­taled US$759 mil­lion dur­ing the trad­ing ses­sion.

The U. S. dollar opened flat against the New Tai­wan dollar, but soon fell into neg­a­tive ter­ri­tory as in­vestors were mo­ti­vated by the lat­est man­u­fac­tur­ing ac­tiv­ity data in the U.S. to cut their hold­ings in the green­back, the deal­ers said.

The U.S. In­sti­tute for Sup­ply Man­age­ment’s man­u­fac­tur­ing pur­chas­ing man­agers in­dex fell to 51.5 in March from 52.9 in Fe­bru­ary, shy of an ear­lier fore­cast of 52.5, which prompted traders in the re­gion to ex­pect that the Fed will slow its pace of kick­ing off an in­ter­est rate hike cy­cle, they said.

Such ex­pec­ta­tions gave a boost to most of the re­gional cur­ren­cies, with the won hit­ting a high against the U.S. dollar at one point, the deal­ers said. The won’s gains led traders here to buy into the New Tai­wan dollar, they added.

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