Green­back closes higher to NT$32.080 on Taipei forex

The China Post - - TAIWAN BUSINESS -

The U.S. dol­lar rose against the New Tai­wan dol­lar Tues­day, gain­ing NT$ 0.320 to close at NT$32.080 as traders here were en­cour­aged by a sharp de­cline of the Chi­nese yuan to dump the lo­cal cur­rency, deal­ers said.

Tai­wan’s cen­tral bank was be­lieved to stand on the buy side for the U.S. dol­lar to fur­ther push up the cur­rency in the late trad­ing ses­sion and placed more pres­sure on the New Tai­wan dol­lar in a bid to make Tai­wan’s ex­porters cheaper in the global mar­ket, they said.

The green­back opened at NT$31.760, and moved be­tween NT$31.555 and NT$32.100 be­fore the close. Turnover to­taled US$1.931 bil­lion dur­ing the trad­ing ses­sion.

The U. S.

dol­lar opened

flat against the New Tai­wan dol­lar and soon fell into neg­a­tive ter­ri­tory as the lo­cal cur­rency staged a re­bound. But in the mid-morn­ing ses­sion, the U.S. dol­lar turned stronger af­ter the Peo­ple’s Bank of China (PBOC) cut the ref­er­ence rate of the Chi­nese yuan against the green­back.

To boost China’s ex­ports, the PBOC set the yuan ref­er­ence rate by 1.86 per­cent lower than Mon­day, a move which sent the yuan into a tail­spin to an al­most three­year low at one point.

Re­gional cen­tral bankers have stepped into a cur­rency de­pre­ci­a­tion com­pe­ti­tion at a time when global de­mand has showed signs of weak­en­ing, deal­ers said, adding that Tues­day’s cut in the yuan ref­er­ence rate by the PBOC even ex­ac­er­bated the re­gional cur­rency war.

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