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