Greenback goes up to NT$31.240 on Taipei forex, traders cautious
The U.S. dollar rose against the New Taiwan dollar Friday, gaining NT$ 0.009 to close at NT$31.240 after moving in a narrow range on moderate turnover, dealers said.
Traders here remained cautious about the U. S. dollar movement in the local foreign exchange ahead of the release of the March import and export price indexes in Washington later in the day, they said.
The local central bank, as it has done almost every session recently, intervened to prop up the U.S. dollar, helping the currency recoup its earlier losses to close above the previous closing level, they added.
The greenback opened at the day’s high of NT$31.300, and moved to a low of NT$31.140 before rebounding. Turnover totaled US$784 million during the trading session.
The U.S. dollar opened higher on follow-through buying from a session earlier, but soon fell to negative territory as traders were encouraged by a rebound staged by the local bourse to buy into the New Taiwan dollar, dealers said.
Foreign institutional investors bought a net NT$ 3.73 billion (US$119 million) worth of local shares on the main board, further boosting demand for the New Taiwan dollar during the session, they said.
With the U. S. dollar falling below the NT$ 31.20 mark at one point, the local central bank stepped in, and its intervention to lift the greenback turned more visible in the late trading session in a bid to slow down the pace of the New Taiwan dollar’s appreciation, dealers said.
Despite the l ocal central bank’s presence, trading volume in the local foreign exchange remained moderate as many traders took to the sidelines, waiting for the upcoming U.S. import and export price index data, which could serve as one of the indications of the Federal Reserve’s monetary policy, dealers said.