Green­back goes up to NT$31.240 on Taipei forex, traders cau­tious

The China Post - - TAIWAN BUSINESS -

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.

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