Green­back closes un­changed at NT$31.052 on Taipei ex­change

The China Post - - TAIWAN BUSINESS -

The U.S. dol­lar closed un­changed from a ses­sion ear­lier at NT$31.052 Thurs­day, with mar­ket sen­ti­ment cau­tious ahead of the out­come of an on­go­ing pol­i­cy­mak­ing meet­ing held by the lo­cal cen­tral bank, deal­ers said.

Many traders were re­main­ing alert over the debt prob­lems in Greece af­ter in­ter­na­tional cred­i­tors of the Euro­pean coun­try re­jected its re­form pro­pos­als, the deal­ers said.

Tai­wan’s cen­tral bank con­tin­ued its in­ter­ven­tion ef­forts to prop up the U.S. dol­lar, help­ing the cur­rency re­coup its ear­lier losses to close above the NT$31 mark, they added.

The green­back opened at NT$31.055 and moved be­tween NT$30.893 and NT$31.060 be­fore the close. Turnover to­taled US$744 mil­lion dur­ing the trad­ing ses­sion.

The U.S. dol­lar opened higher against the New Tai­wan dol­lar, but soon en­coun­tered selling since the lo­cal eq­uity mar­ket staged a re­bound on the back of for­eign in­sti­tu­tional buy­ing, the deal­ers said.

Ac­cord­ing to the Tai­wan Stock Ex­change, for­eign in­sti­tu­tional in­vestors bought a net NT$10.37 bil­lion (US$334 mil­lion)-worth of lo­cal shares on the main board Thurs­day, which gave a boost to de­mand for the New Tai­wan dol­lar.

As it has done regularly in re­cent ses­sions, the cen­tral bank en­tered the trad­ing floor in the lat­ter part of the trad­ing ses­sion, dump­ing the New Tai­wan dol­lar in ex­change for the U.S. dol­lar in a bid to pro­tect Tai­wan’s ex­ports at a time when the coun­try has been suf­fer­ing a de­cline in its out­bound sales, the deal­ers said.

De­spite the cen­tral bank’s in­ter­ven­tion, turnover on the lo­cal for­eign ex­change mar­ket re­mained mod­er­ate, in­di­cat­ing that many traders pre­ferred to stay on the side­lines await­ing the con­clu­sion of the bank’s quar­terly pol­i­cy­mak­ing meet­ing, the deal­ers said.

As the lo­cal econ­omy has shown signs of slow­ing, the mar­ket had widely an­tic­i­pated that the cen­tral bank would leave its key in­ter­est rates un­changed to keep liq­uid­ity high, they said. Re­newed con­cerns over the debt sit­u­a­tion in the eu­ro­zone also kept traders here at bay, as they feared that the rejection of Greece’s re­form pack­age by its cred­i­tors will lead to a Greek de­fault, the deal­ers added.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.