US dollar rises to NT$31.002 on Taipei forex

The China Post - - TAIWAN BUSINESS -

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.

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