US dollar rises to fin­ish trade at NT$31.062 on Taipei forex

The China Post - - TAIWAN BUSINESS -

The U.S. dollar rose against the New Tai­wan dollar Thurs­day, gain­ing NT$0.140 to close at NT$31.062 in the wake of a plunge in the lo­cal eq­uity mar­ket af­ter mas­sive for­eign in­sti­tu­tional sell­ing, deal­ers said.

Seiz­ing the weak­ness of other re­gional cur­ren­cies as a cause, the lo­cal cen­tral bank jumped onto the trad­ing floor, as it has done reg­u­larly re­cently, to add more down­ward pres­sure on the New Tai­wan dollar and fur­ther boost the U.S. dollar, the deal­ers said.

The green­back opened at NT$30.980 and moved be­tween NT$30.788 and NT$31.065. Turnover to­taled US$988 mil­lion dur­ing the trad­ing ses­sion.

The U.S. dollar opened higher against the New Tai­wan dollar on a tech­ni­cal re­bound from losses seen a ses­sion ear­lier, but soon fell into the red as traders here took their cues from a de­ci­sion by the Euro­pean Cen­tral Bank to keep pump­ing funds into the mar­ket, the deal­ers said.

How­ever, the New Tai­wan dollar’s mo­men­tum started to fade as the lo­cal bourse took a hit on fu­tures-led sell­ing, es­pe­cially in the bell­wether elec­tron­ics sec­tor, af­ter for­eign in­sti­tu­tional in­vestors built up short po­si­tions in the fu­tures mar­ket, they said.

Ac­cord­ing to the Tai­wan Stock Ex­change, for­eign in­sti­tu­tional in­vestors sold a net NT$13.07 bil­lion (US$421 mil­lion)-worth of lo­cal shares on the main board, send­ing the weighted in­dex down 2.17 per­centat the close.

Amid wor­ries over Tai­wan’s global com­pet­i­tive­ness, the lo­cal cen­tral bank con­tin­ued its in­ter­ven­tion to prop up the U.S. dollar, with the bank’s pres­ence ap­pear­ing more vis­i­ble in the lat­ter part of the trad­ing ses­sion and vault­ing the U.S. cur­rency back to the NT$31 mark be­fore the end of the ses­sion, the deal­ers said.

The cur­ren­cies in the re­gion have been in an es­ca­lat­ing de­pre­ci­a­tion com­pe­ti­tion as cen­tral bankers have been ea­ger to keep their cur­ren­cies cheaper in a bid to se­cure a larger share of the global mar­ket, they said.

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