US dollar closes higher at NT$31.162 on forex

The China Post - - TAIWAN BUSINESS -

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.

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