Green­back closes lower at NT$30.922 on the Taipei forex

The China Post - - TAIWAN BUSINESS -

The U.S. dollar fell against the New Tai­wan dollar Wed­nes­day, shed­ding NT$0.080 to close at NT$30.922 as traders took cues from the dis­ap­point­ing fac­tory or­ders data in Wash­ing­ton overnight and cut their green­back hold­ings, deal­ers said.

A re­bound by other re­gional cur­ren­cies gave ad­di­tional in­di­ca­tions to traders here to buy into the New Tai­wan dollar, be­fore the lo­cal cen­tral bank stepped in to prop up the U.S. cur­rency, deal­ers said.

The green­back opened at the day’s high of NT$31.002, and moved to a low of NT$30.770 be­fore re­bound­ing. Turnover to­taled US$700 mil­lion dur­ing the trad­ing ses­sion.

The U. S. dollar opened flat against the New Tai­wan dollar, but soon fell into neg­a­tive ter­ri­tory in the wake of the lat­est U. S. eco­nomic data, which showed a 0.4 per­cent drop in fac­tory or­ders for April af­ter a 2.2 per­cent in­crease in March, deal­ers said.

The poor fac­tory or­der re­port re­sult­ing from fall­ing de­mand for elec­tron­ics and air­craft raised con­cerns over the U.S. econ­omy, the largest in the world, and prompted traders in the re­gion to cut their green­back po­si­tions, deal­ers said.

The strength of other re­gional cur­ren­cies, in par­tic­u­lar the Ja­panese yen and the South Korean won, led traders here to ex­pand their New Tai­wan dollar hold­ings as they took ad­van­tage of worry over the U.S. eco­nomic cli­mate, deal­ers said.

Be­fore the lo­cal cen­tral bank en­tered the trad­ing floor, for­eign in­sti­tu­tional sell­ing in the lo­cal eq­uity mar­ket de­flated the New Tai­wan dollar to some ex­tent.

Ac­cord­ing to the Tai­wan Stock Ex­change, for­eign in­sti­tu­tional in­vestors sold a net NT$3.06 bil­lion (US$98.96 mil­lion) worth of lo­cal shares on the main board Wed­nes­day.

The lo­cal cen­tral bank again en­tered the mar­ket late in the trad­ing ses­sion, help­ing the U. S. dollar to re­coup most of its ear­lier losses, as the bank tried to pro­tect Tai­wan’s ex­ports amid a cur­rency de­pre­ci­a­tion com­pe­ti­tion in the re­gion, deal­ers said.

Turnover in the lo­cal for­eign ex­change mar­ket re­mained mod­er­ate as many traders stepped back from the trad­ing floor, wait­ing for the con­clu­sions of a Euro­pean Cen­tral Bank pol­i­cy­mak­ing meet­ing that were due later in the day, deal­ers said.

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