Greenback closes higher to NT$32.080 on Taipei forex
The U.S. dollar rose against the New Taiwan dollar Tuesday, gaining NT$ 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.
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.