US dol­lar closes higher at NT$31.770 on Taipei forex ahead of data re­lease

The China Post - - BUSINESS -

The U.S. dol­lar rose against the New Tai­wan dol­lar Fri­day, gain­ing NT$0.015 to close at NT$31.770 on mod­er­ate turnover ahead of the re­lease of July U.S. non-farm pay­roll data later in the day, deal­ers said.

Tak­ing ad­van­tage of the lim­ited turnover, Tai­wan’s cen­tral bank con­tin­ued buy­ing into the U.S. dol­lar late in the ses­sion to vault the cur­rency above its pre­vi­ous close by the end of the trad­ing day, they said.

It was the sev­enth con­sec­u­tive ses­sion in which the U.S. dol­lar ap­pre­ci­ated against the New Tai­wan dol­lar with the help of in­ter­ven­tion by Tai­wan’s cen­tral bank.

The green­back opened at NT$31.760, and moved be­tween NT$31.635 and NT$31.775 be­fore the close. Turnover to­taled US$648 mil­lion dur­ing the trad­ing ses­sion.

The U.S. dol­lar opened higher against the New Tai­wan dol­lar on fol­low-through buy­ing, but soon en­coun­tered down­ward pres­sure to fall into neg­a­tive ter­ri­tory as traders here were en­cour­aged by the strength of other re­gional cur­ren­cies, in par­tic­u­lar the South Korean won, to pick up the green­back, deal­ers said.

The won, which has been fol­lowed closely by traders here as a bench­mark for buy­ing and selling the New Tai­wan dol­lar, ex­tended its mo­men­tum from a ses­sion ear­lier on a tech­ni­cal re­bound from its re- cent slump, they said.

Be­fore the cen­tral bank in­ter­vened, for­eign in­sti­tu­tional selling on the Tai­wan stock ex­change let some air out of the New Tai­wan dol­lar, deal­ers said.

Ac­cord­ing to the Tai­wan stock ex­change, for­eign in­sti­tu­tional in­vestors sold a net NT$919 mil­lion (US$28.93 mil­lion) worth of lo­cal shares on the main board, in­creas­ing de­mand for the U.S. dol­lar.

Mar­ket sen­ti­ment in the

lo­cal for­eign ex­change mar­ket re­mained cau­tious, with many traders hold­ing back as they waited for the July em­ploy­ment data in the United States, deal­ers said.

Traders wanted to have a bet­ter pic­ture of the U.S. econ­omy, the largest in the world, to as­sess whether or not the Fed­eral Re­serve will ad­just its mon­e­tary pol­icy, they said.

The Fed is ex­pected to kick off a cy­cle of in­ter­est rate hikes later in the year.

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