US dollar de­clines to NT$31.156 on Taipei forex

The China Post - - TAIWAN BUSINESS -

The U.S. dollar fell against the New Tai­wan dollar Wed­nes­day, shed­ding NT$0.146 to close at NT$31.156 as traders seized a strong re­bound on the Tai­wan Stock Ex­change as a rea­son to raise their hold­ings in the lo­cal cur­rency, deal­ers said.

The strength of other re­gional cur­ren­cies also placed down­ward pres­sure on the U.S. dollar in the lo­cal for­eign ex­change mar­ket be­fore Tai­wan’s cen­tral bank stepped in, help­ing the U.S. unit to re­coup some of its ear­lier losses, the deal­ers said.

The green­back opened at NT$31.310 and moved be­tween NT$30.907 and NT$31.315 be­fore the close. Turnover to­taled US$761 mil­lion dur­ing the trad­ing ses­sion.

The U.S. dollar opened higher against the New Tai­wan dollar, but soon fell into neg­a­tive ter­ri­tory due to strong buy­ing in the lo­cal bourse on a tech­ni­cal re­bound from a slump seen a ses­sion ear­lier, the deal­ers said.

The weighted in­dex on the main board closed up 1.16 per­cent Wed­nes­day, led by large-cap stocks across the board, re­cov­er­ing from a 1.88 per­cent fall seen a ses­sion ear­lier.

The gains in share prices boosted de­mand for the New Tai­wan dollar, prompt­ing cur­rency traders to buy into the lo­cal cur­rency through­out the ses­sion, the deal­ers said.

The Ja­panese yen rose 1.2 per- cent against the U.S. dollar at one point af­ter Bank of Ja­pan Gover­nor Haruhiko Kuroda said it will be dif­fi­cult for the coun­try’s cur­rency to fall fur­ther af­ter a re­cent plunge against the green­back.

The yen’s re­bound gave a strong hint to traders in other cur­ren­cies in the re­gion, in­clud­ing the New Tai­wan dollar, to move higher against the U.S. dollar, the deal­ers said.

As it has done reg­u­larly in re­cent ses­sions, the lo­cal cen­tral bank jumped onto the trad­ing floor in the lat­ter part of the trad­ing ses­sion in an at­tempt to lessen the im­pact on the U.S. dollar re­sult­ing from the gain­ing lo­cal bourse and a stronger yen, they said.

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