Greenback closes lower on Taipei forex to NT$31.032
The U. S. dollar fell against the New Taiwan dollar Friday, shedding NT$0.030 to close at NT$31.032 as the strength of the South Korea won led traders here to buy into the local currency, dealers said.
The losses suffered by the U.S. dollar were limited, however, by foreign institutional selling in Taiwan’s stock market and intervention by Taiwan’s central bank, they said.
Volume in the foreign exchange market remained moderate as many traders preferred to stay on the sidelines ahead of the release of U.S. non-farm payroll data later in the day, dealers said.
The greenback opened at NT$31.065, and moved between NT$30.827 and NT$31.069 before the close. Turnover totaled US$570 million during the trading session.
The U.S. dollar opened higher on follow-through buying from a session earlier, but soon dipped into negative territory as traders seized on a technical rebound staged by the won, dealers said.
As Taipei and Seoul compete with each other in the global market, currency traders here tend to track the won’s movement and factor it into their trading strategies in the foreign exchange market, they said.
But support for the New Taiwan dollar was offset by added demand for the greenback as foreign institutional investors continued their selloff on the Taiwan stock exchange, dealers said.
Foreign institutional investors were net sellers of NT$9.93 billion (US$320 million) in local shares on the main board Friday after selling a net NT$13.07 billion in shares a session earlier, according to stock exchange data.
The central bank’s support of the U.S. dollar pushed the greenback to the NT$31 mark at the close, a level the bank hopes to maintain in an attempt to help Taiwanese exporters remain competitive in the global market, dealers said.