US dol­lar closes higher on Taipei forex to NT$31.726

The China Post - - TAIWAN BUSINESS -

The U.S. dol­lar rose against the New Tai­wan dol­lar Tues­day, gain­ing NT$ 0.021 to close at NT$31.726 af­ter Tai­wan’s cen­tral bank jumped into the mar­ket to prop up the green­back, help­ing the cur­rency re­coup its early losses, deal­ers said.

The cen­tral bank’s in­ter­ven­tion aimed to send the New Tai­wan dol­lar lower to boost Tai­wan’s ex­ports at a time when other re­gional cur­ren­cies, in par­tic­u­lar the South Korean won, were still de­pre­ci­at­ing against the U.S. dol­lar, they said.

The green­back opened at NT$31.745, and moved be­tween NT$31.581 and NT$31.760 be­fore the close. Turnover to­taled US$882 mil­lion dur­ing the trad­ing ses­sion.

The U.S. dol­lar opened higher on fol­low-through buy­ing from a ses­sion ear­lier, but selling emerged to push the cur­rency into the red af­ter the New Tai­wan dol­lar staged a tech­ni­cal re­bound, deal­ers said.

For­eign in­sti­tu­tional buy­ing on the main board fur­ther lifted de­mand for the New Tai­wan dol­lar and pushed up the cur­rency even higher, they said. Ac­cord­ing to the Tai­wan Stock Ex­change, for­eign in­vestors bought a net NT$3.20 bil­lion (US$100.86 mil­lion) worth of lo­cal shares on the lo­cal main board Tues­day.

De­spite the for­eign net buy recorded on the main board, some other for­eign in­vestors still moved their funds out of the coun­try to let some air out of the New Tai­wan dol­lar on hopes that the U.S. Fed­eral Re­serve will raise in­ter­est rates later in the year, which is ex­pected to give a boost to the U.S. dol­lar, deal­ers said.

In the late trad­ing ses­sion, Tai­wan’s cen­tral bank made a pres­ence in the cur­rency mar­ket, buy­ing into the U.S. dol­lar by seiz­ing on the weak­ness of the won as a jus­ti­fi­ca­tion to push the New Tai­wan dol­lar down, they said.

The buy­ing by the lo­cal cen­tral bank of the U.S. dol­lar is ex­pected to con­tinue as long as other re­gional cur­ren­cies keep trend­ing lower in re­flec­tion of a likely rate in­crease in the U.S. mar­ket, they added.

Deal­ers said that it seemed that Tai­wan’s cen­tral bank will lead the U.S. dol­lar to trend fur­ther higher and head to­ward the NT$32 mark in a bid to pro­tect Tai­wan’s ex­porters.

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