US dol­lar climbs NT$0.080 to end at day’s high of NT$31.132 on Taipei forex

The China Post - - TAIWAN BUSINESS -

The U.S. dol­lar rose against the Tai­wan dol­lar Fri­day, gain­ing NT$0.080 to close at the day’s high of NT$31.132 with mar­ket sen­ti­ment cau­tious about the debt sit­u­a­tion in the eu­ro­zone, deal­ers said.

Tai­wan’s cen­tral bank jumped into the trad­ing floor, as it has done regularly in re­cent ses­sions, to prop up the U.S. dol­lar, help­ing the cur­rency re­coup its ear­lier losses at the close, they said.

The green­back opened at NT$31.080, and moved to a low of NT$30.890 be­fore re­bound­ing. Turnover to­taled US$863 mil­lion dur­ing the trad­ing ses­sion.

The U. S. dol­lar opened up against the Tai­wan dol­lar on fol­low-through buy­ing from a ses­sion ear­lier, but selling fol­lowed as traders here took ad­van­tage of the lo­cal cen­tral bank’s in­ter­ven­tion in buy­ing the green­back a day ear­lier to dump the U.S. unit in ex­change for the lo­cal unit at a more prefer­able ex­change rate, deal­ers said.

A move by the Peo­ple’s Bank of China to raise the Chi­nese yuan’s ref­er­ence rate by 0.02 per­cent against the U.S. dol­lar en­cour­aged traders here to sell more of the green­back, they said.

For­eign in­sti­tu­tional buy­ing in the lo­cal eq­uity mar­ket also boosted de­mand for the Tai­wan dol­lar. Ac­cord­ing to the Tai­wan Stock Ex­change, for­eign in­sti­tu­tional inves- tors bought a net NT$2.26 bil­lion (US$72.59 mil­lion) worth of lo­cal shares on the main board Fri­day.

In the late trad­ing ses­sion, the lo­cal cen­tral bank stepped into the mar­ket, buy­ing into the U.S. dol­lar to vault the cur­rency back to the NT$31 mark, a level the mar­ket be­lieves the cen­tral bank wants to main­tain in the near term, deal­ers said.

Traders ap­peared cau­tious through­out the ses­sion af­ter debt- rid­den Greece failed to reach a con­sen­sus with its cred­i­tors over night af­ter the coun­try’s re­form pack­age was re­jected ear­lier this week, deal­ers said.

With the June 30 debt re­pay­ment dead­line for Greece ap­proach­ing, cur­rency traders turned more wary amid fears over a de­fault by the Euro­pean coun­try if no agree­ment is struck on time.

Another meet­ing on the Greece debt is sched­uled for Satur­day.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.