US dollar closes higher at NT$31.162 on forex
The U.S. dollar rose against the New Taiwan dollar Thursday, gaining NT$0.006 to close at NT$31.162 as Taiwan’s central bank made further efforts to push down the local currency, helping the greenback recoup its earlier losses, dealers said.
Trading volume remained moderate as currency traders stayed on the sidelines, waiting for the U.S. retail sales numbers for May for more clues about the climate of the world’s largest economy, they said.
The greenback opened at the day’s high of NT$31.200, and moved to a low of NT$30.894 before rebounding. Turnover totaled US$627 million during the trading session.
The U.S. dollar opened higher against the New Taiwan dollar on a technical rebound from a fall seen a session earlier, but soon encountered downward pressure as traders here took cues from a fall of the U.S. dollar index, which tracks the greenback against the currencies of Washington’s major trading partners, dealers said.
The weakness of the U.S. dollar came in the wake of reduced worries over the debt problems in Greece after talks between the debt-ridden European country and its creditors made progress overnight, they said.
A stronger New Taiwan dollar also reflected a report that China’s industrial production for May gained 6.1 percent from a year earlier, beating an earlier market estimate of a 6 percent increase, dealers said.
After witnessing the U.S. dollar fall below the NT$31 mark, the local central bank stepped in to prop the greenback back up to that level at the close, dealers said, adding that the NT$31 level could be the bottom line for the central bank in the short term.
The central bank’s intervention was motivated by the losses posted by the Japanese yen and the South Korean won amid a currency deprecation battle in the region in a bid to keep the local currency cheaper and protect Taiwan’s exports, dealers said.