US dollar closes higher at NT$31.256 on Taipei forex

The China Post - - TAIWAN BUSINESS -

The U. S. dollar rose against the New Tai­wan dollar Mon­day, gain­ing NT$0.030 to close at the day’s high of NT$31.256 on mod­er­ate turnover amid cau­tious sen­ti­ment ahead of a two-day pol­icy mak­ing meet­ing sched­uled by the U.S. Fed­eral Re­serve to kick off a day later, deal­ers said.

The quiet trad­ing ses­sion also re­flected fears over the debt prob­lems in Greece as ne­go­ti­a­tions on the deb­trid­den coun­try’s bailout pro­gram failed to yield any mean­ing­ful con­clu­sion yet, the deal­ers said.

Tai­wan’s cen­tral bank en­tered the mar­ket again to prop up the U.S. dollar, help­ing the cur­rency to re­turn to pos­i­tive ter­ri­tory at the close in a bid to pro­tect Tai­wanese ex­porters, they added.

The green­back opened at NT$31.226 and moved to a low of NT$30.930 be­fore re­bound­ing. Turnover to­taled US$667 mil­lion dur­ing the trad­ing ses­sion.

The U.S. dollar opened flat against the New Tai­wan dollar, but soon fell into the red as Tai­wanese ex­porters cut their green­back po­si­tions by tak­ing ad­van­tage of re­cent losses in­curred by the lo­cal cur­rency, the deal­ers said.

The New Tai­wan dollar also staged a re­bound af­ter the lo­cal cen­tral bank in­ter­vened to drag down the lo­cal cur­rency in the pre­vi­ous ses­sion, they said.

Af­ter the U.S. dollar fell be­low the NT$30 mark, the lo­cal cen­tral bank jumped onto the trad­ing floor in the late ses­sion, as it has done in most re­cent ses­sions, to push up the green­back back to that level at the close, the deal­ers said.

De­spite the cen­tral bank’s in­ter­ven- tion, turnover in the lo­cal for­eign ex­change mar­ket failed to ex­pand, with many traders stay­ing on the side­lines to await for the re­sults of the Fed’s up­com­ing meet­ing, the deal­ers said.

On Fri­day, a pre­lim­i­nary read­ing showed that the Michi­gan con­sumer sen­ti­ment stood at 94.6 for June, an in­crease from May’s fi­nal read­ing of 90.7, which raised fears that the Fed will raise its in­ter­est rates in Septem­ber, they said.

The up­com­ing Fed meet­ing could give more hints through its state­ment on the eco­nomic cli­mate on when an in­ter­est rate hike cy­cle will start, they added. Traders here have also been watch­ing closely how the eu­ro­zone will deal with the debt prob­lems in Greece to pre­vent the coun­try from de­fault­ing on its mas­sive loans, the deal­ers said.

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