Green­back dips down to NT$31.162 on the Taipei forex

The China Post - - BUSINESS -

The U. S. dollar fell against the New Tai­wan dollar Fri­day, shed­ding NT$ 0.091 to close at NT$ 31.162 as the strength of other re­gional cur­ren­cies helped boost the lo­cal unit through­out the ses­sion, deal­ers said.

The gains posted by the re­gional cur­ren­cies re­flected fad­ing wor­ries that U.S. Fed­eral Re­serve will kick off an in­ter­est rate hike cy­cle as early as June, as the mar­ket was dis­ap­pointed by the lat­est eco­nomic data re­leased in Wash­ing­ton, deal­ers said.

The U. S. dollar, how­ever, got some sup­port from the lo­cal cen­tral bank’s buy­ing and re­couped some of its early losses, deal­ers said. The bank has been striv­ing to keep the New Tai­wan dollar low to pro­tect the com­pet­i­tive­ness of Tai­wan’s ex­ports in the global mar­ket.

The green­back opened at NT$ 31.253, and moved be­tween NT$ 31.065 a nd NT$ 31.259 be­fore the close. Turnover to­taled US$ 746 mil­lion dur­ing the trad­ing ses­sion.

The U. S. dollar opened flat against the New Tai­wan dollar, but soon dipped into neg­a­tive ter­ri­tory as traders here raised their hold­ings in the lo­cal cur­rency, mo­ti­vated by the gains posted by other re­gional cur­ren­cies, in par­tic­u­lar the South Korean won, deal­ers said.

The strength of the re­gional cur­ren­cies re­sulted from fad­ing fears that the Fed will soon raise its key in­ter­est rates, af­ter Wash­ing­ton re­ported worsethan- ex­pected hous­ing mar­ket and job­less data overnight, deal­ers said.

Hous­ing statis­tics in the U. S. rose 2 per­cent in March from the pre­vi­ous month to 926,000, com­pared with mar­ket ex­pec­ta­tions of 1.04 mil­lion. Job­less claims in U. S. rose 12,000 to 294,000 in the week end­ing April 11, higher than the es­ti­mated of 280,000.

In ad­di­tion, the Peo­ple’s Bank of China’s de­ci­sion to raise the Chi­nese yuan’s ref­er­ence rate against the U. S. dollar added down­ward pres­sure on the green­back in the re­gion, giv­ing an ad­di­tional boost to the New Tai­wan dollar, deal­ers said.

Be­fore the lo­cal cen­tral bank en­tered the trad­ing floor late in the ses­sion, for­eign in­sti­tu­tional sell­ing in the lo­cal mar­ket let some air out of the Tai­wan dollar, deal­ers said.

For­eign in­sti­tu­tional in­vestors sold a net NT$ 3.81 bil­lion ( US$ 122 mil­lion) worth of lo­cal shares on the main board Fri­day, send­ing the weighted in­dex 0.88 per­cent lower by the close, ac­cord­ing to the Tai­wan Stock Ex­change.

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