Greenback rises to close at NT$31.231 on Taipei forex
The U.S. dollar rose against the New Taiwan dollar Thursday, gaining NT$0.005 to close at NT$31.231 as the local central bank intervened to push the U.S. unit back into positive territory, dealers said.
The market remained cautious toward the U.S. dollar movement as the board of the U.S. Federal Reserve in its last policymaking meeting was divided over when interest rates should be raised, dealers said.
The greenback opened at NT$31.300, and moved between NT$31.100 and NT$31.309 before the close. Turnover totaled US$868 million during the trading session.
The U.S. dollar opened higher against the New Taiwan dollar on follow-through buying from the previous session amid expectations of the local central bank’s continued efforts to support the greenback, dealers said.
However, selling in the U.S. dollar set in as traders here took cues from an initial technical rebound on the local bourse, which boosted demand for the New Taiwan dollar and placed downward pressure on the U.S. unit during most of the trading session, dealers said.
But the gains posted by the New Taiwan dollar were deflated to some extent by profit taking in the equity market, which closed down 0.04 percent at 9,568.04 points, off an early high of 9,663.05, dealers said.
Foreign institutional investors sold a net NT$1.24 billion (US$39.70 million) worth of local shares on the main board, lending some support to the U.S. dollar, according to the Taiwan Stock Exchange.