US dollar closes higher on forex at NT$31.226

The China Post - - TAIWAN BUSINESS -

The U.S. dollar rose against the Tai­wan dollar Fri­day, gain­ing NT$0.064 to close at the day’s high of NT$31.226 af­ter mov­ing in a quiet ses­sion, with mod­er­ate trad­ing vol­ume, deal­ers said.

Af­ter spot­ting the weak­ness of other re­gional cur­ren­cies, Tai­wan’s cen­tral bank made its pres­ence felt in the lat­ter part of the trad­ing ses­sion, dump­ing the Tai­wan dollar to vault the U.S. dollar back into pos­i­tive ter­ri­tory at the close, the deal­ers said.

The green­back opened at NT$31.200 and moved to a low of NT$30.884 be­fore re­bound­ing. Turnover to­taled US$512 mil­lion dur­ing the trad­ing ses­sion.

The U.S. dollar opened higher against the New Tai­wan dollar, but soon fell into the red as the lo­cal cur­rency staged a tech­ni­cal re­bound from a slump seen a ses­sion ear­lier, when the lo­cal cen­tral bank’s in­ter­ven­tion pushed down the coun­try’s unit, the deal­ers said.

The cen­tral bank was mo­ti­vated by losses in­curred by other re­gional cur­ren­cies, in par­tic­u­lar the Ja­panese yen and the South Korean won, to cut its hold­ings in the New Tai­wan dollar amid lin­ger­ing con­cerns over the debt prob­lems in Greece, they said.

Wor­ries over a de­fault by Greece on its mas­sive debt have been raised by a lack of a mean­ing­ful progress in the on­go­ing fi­nan­cial aid ne­go­ti­a­tions be­tween the Euro­pean coun­try and its cred­i­tors, the deal­ers said.

Mar­ket sen­ti­ment was haunted by com­ments made by a spokesman for the In­ter­na­tional Mon­e­tary Fund who said that there have been “ma­jor dif­fer­ences” in the talks that will need to be dealt with, they said.

Be­fore the cen­tral bank’s in­ter­ven­tion, for­eign in­sti­tu­tional sell­ing in the lo­cal eq­uity mar­ket de­flated the New Tai­wan dollar to some ex­tent, the deal­ers said.

Ac­cord­ing to the Tai­wan Stock Ex­change, for­eign in­sti­tu­tional in­vestors sold a net NT$4.66 bil­lion (US$149 mil­lion)-worth of lo­cal shares on the main board Fri­day.

Since the mar­ket has an­tic­i­pated that the U.S. will start to raise in­ter­est rates later this year, a stronger U.S. dollar could raise a cur­rency de­pre­ci­a­tion com­pe­ti­tion in the re­gion, and the lo­cal cen­tral bank is likely to ex­er­cise more in­ter­ven­tion, the deal­ers said, adding that NT$31 to the green­back is a pos­si­ble bot­tom line for Tai­wan’s cen­tral bank in the near term.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.