Green­back ends the day lower at NT$31.261 on the Taipei forex

The China Post - - TAIWAN BUSINESS -

The U.S. dol­lar fell against the New Tai­wan dol­lar Wed­nes­day, shed­ding NT$0.005 to close at NT$31.261 af­ter trad­ing in a quiet ses­sion ahead of the con­clu­sion of the U.S. Fed­eral Re­serve’s pol­i­cy­mak­ing meet­ing, deal­ers said.

Tai­wan’s cen­tral bank en­tered the lo­cal for­eign ex­change mar­ket in the late trad­ing ses­sion, as it has done regularly in re­cent ses­sions, to help the U.S. dol­lar re­cover most of its ear­lier losses by the end of trad­ing, they said.

The green­back opened at the day’s high of NT$31.266, and moved to a low of NT$30.896 be­fore re­bound­ing. Turnover to­taled US$593 mil­lion dur­ing the trad­ing ses­sion.

The U. S. dol­lar opened flat against the New Tai­wan dol­lar, but soon fell to neg­a­tive terri- tory as lo­cal ex­porters cut their green­back po­si­tions by tak­ing ad­van­tage of the up­turn en­joyed by the green­back in re­cent ses­sions, deal­ers said.

Af­ter the ini­tial sig­nif­i­cant jump, the U.S. dol­lar moved in a nar­row band as cur­rency traders turned cau­tious about the on go­ing Fed meet­ing, which is sched­uled to end later in the day, they said.

While the mar­ket has widely ex­pected that the Fed will start to raise in­ter­est rates in Septem­ber at the ear­li­est, many traders pre­ferred to stay on the side­lines ahead of the meet­ing’s con­clu­sion, deal­ers said.

Traders tended to wait for com­ments to be made by Fed Chair Janet Yellen for more clues about the U.S. cen­tral bank’s in­ten­tions on how to deal with its mon­e­tary pol­icy, they said.

The strength of the South Korean won in the re­gional mar­ket added down­ward pres­sure on the U.S. dol­lar against the New Tai­wan dol­lar. Traders here track the won be­fore map­ping out their strate­gies to trade the New Tai­wan dol­lar as Taipei and Seoul com­pete fiercely in the global mar­ket.

Be­fore the lo­cal cen­tral bank’s in­ter­ven­tion, for­eign in­sti­tu­tional selling in the lo­cal eq­uity mar­ket let some air out of the New Tai­wan dol­lar, deal­ers said.

Ac­cord­ing to the Tai­wan Stock Ex­change, for­eign in­sti­tu­tional in­vestors sold a net NT$10.50 bil­lion (US$336 mil­lion) worth of lo­cal shares on the main board Wed­nes­day, which low­ered selling of the U.S. dol­lar to some ex­tent they said.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.