Green­back closes lower on Taipei forex to NT$31.032

The China Post - - TAIWAN BUSINESS -

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.

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