US dollar dips to NT$31.253 on Taipei forex due to strong regional currencies
The U.S. dollar fell against the New Taiwan dollar on Thursday, shedding NT$0.077 to close at NT$31.253 as traders here were encouraged by the strength of other regional currencies to buy into the local unit, dealers said.
The losses suffered by the U.S. dollar also reflected heavy foreign institutional buying in the local bourse, which boosted demand for the New Taiwan dollar throughout the session, the dealers said.
However, the U.S. dollar’s losses were capped by the end of the session as the local central bank jumped onto the trading floor, as it has done during previous sessions, in a bid to protect Taiwan’s exports in the world market, they added.
The greenback opened at the day’s high of NT$ 31.330 and moved to a low of NT$31.160 be- fore rebounding. Turnover totaled US$676 million during the trading session.
The U. S. dollar opened flat against the New Taiwan dollar, but soon fell into the red as traders here took cues from the gains posted by other regional currencies to cut their greenback holdings, the dealers said.
The regional currencies got a boost from hopes that the U.S. Fed- eral Reserve will not be in a hurry to launch an interest rate hike cycle following the latest disappointing economic data released in Washington, they said.
Among the latest worse thanexpected U.S. economic data, industrial production for March fell 0.6 percent from a month earlier, compared with a 0.4 percent decline previously forecast by the market.
Selling in the U.S. dollar escalated as the local bourse staged a strong rebound, led by the high tech sector on the back of foreign institutional buying, the dealers said.
According to the Taiwan Stock Exchange (TWSE), foreign institutional investors bought a net NT$10.44 billion (US$334 million) in local shares on the local main board Thursday, lifting the weighted index on the TWSE by 1.22 percent at the close.