US dollar dips to NT$31.253 on Taipei forex due to strong re­gional cur­ren­cies

The China Post - - TAIWAN BUSINESS -

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.

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