US dollar rises to NT$31.002 on Taipei forex
The U.S. dollar rose against the New Taiwan dollar Tuesday, gaining 0.070 to close at NT$31.002, ending above the NT$31 mark for the first time since April 24.
The U.S. dollar ended higher as expected, as Taiwan’s central bank has joined a currency depreciation competition in a bid to protect the country’s exporters, dealers said.
The greenback opened at NT$31.000, and moved between NT$30.851 and NT$31.010 before the close. Turnover totaled US$1.025 billion during the trading session.
It was the seventh consecutive hike of the U.S. dollar against the New Taiwan dollar and the first time it closed above NT$31 since April 24, when it ended at 31.031.
The U.S. dollar opened higher at NT$30.00 on follow-through buying, but soon fell into the red as traders here locked in their gains from the previous session. However, the U.S. dollar kept moving in a narrow range amid caution about the debt situation in Greece, dealers said.
Before the local central bank’s intervention, the U.S. dollar losses were capped to some extent as traders saw that foreign institutional investors had sold more local shares than they had bought Tuesday, dealers said.
Foreign institutional investors sold a net NT$1.91 billion ( US$61.61 million) worth of local shares on the main board, Tuesday, sending the weighted index down 0.11 percent at the close, according to the Taiwan Stock Exchange.
Taking cues from the weakness of the South Korean won, the local central bank entered the trading floor late in the session, as it has been doing in recent sessions, helping the greenback to vault past the NT$31 mark, dealers said.
As long as the won stays weak, the local central bank is likely to drag down the New Taiwan dollar further, they said.