Greenback dips down to NT$31.162 on the Taipei forex
The U. S. dollar fell against the New Taiwan dollar Friday, shedding NT$ 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.