US dol­lar closes higher at NT$32.668 on Taipei forex

The China Post - - TAIWAN BUSINESS -

The U.S. dol­lar rose against the New Tai­wan dol­lar Wed­nes­day, gain­ing NT$0.015 to close at NT$32.668 af­ter mov­ing in a nar­row range on mod­er­ate turnover, deal­ers said.

Tai­wan’s cen­tral bank in­ter­vened again as it has re­cently to buy into the U.S. dol­lar, help­ing the cur­rency re­coup losses suf­fered ear­lier in the day to close up from a ses­sion ear­lier, they said.

The green­back opened at NT$32.665 and moved be­tween NT$32.436 and NT$32.670 be­fore the close. Turnover to­taled US$572 mil­lion dur­ing the trad­ing ses­sion.

Shortly af­ter open­ing higher against the New Tai­wan dol­lar, the green­back soon dipped into neg­a­tive ter­ri­tory as the lo­cal cur­rency staged a tech­ni­cal re­bound from a ses­sion ear­lier, deal­ers said.

Ad­di­tional pres­sure was put on the green­back when the Peo­ple’s Bank of China raised the Chi­nese yuan’s ref­er­ence rate against the U.S. dol­lar early Wed­nes­day, in­flu­enc­ing traders in Taipei, they said.

Af­ter the fall, the U.S. dol­lar traded in a nar­row range the rest of the ses­sion, re­flect­ing the lim­ited fluc­tu­a­tions seen dur­ing the day in other re­gional cur­ren­cies, in­clud­ing the South Korean won, deal­ers said.

Even be­fore the cen­tral bank in­ter­vened, the U.S. dol­lar was kept from tum­bling fur­ther buy a plunge in the lo­cal eq­uity mar­ket, driven in part by a sell-off by for­eign in­sti­tu­tional in­vestors, which in­creased de­mand for the U.S. cur­rency.

Ac­cord­ing to the Tai­wan Stock Ex­change, for­eign in­sti­tu­tional in­vestors sold a net NT$6.06 bil­lion in shares on the ex­change Wed­nes­day, send­ing the weighted in­dex down 1.9 per­cent at the close.

The cen­tral bank took ad­van­tage of the mod­er­ate trad­ing vol­ume in the for­eign ex­change mar­ket late in the ses­sion to pro­vide ad­di­tional back­ing to the U.S. dol­lar be­fore the close, deal­ers said.

Many observers ex­pect the cen­tral bank to keep the New Tai­wan dol­lar rel­a­tively cheap to boost ex­ports and stim­u­late the econ­omy af­ter Tai­wan’s gov­ern­ment re­cently trimmed its forecast for the coun­try’s eco­nomic growth in 2015 to 1.56 per­cent, from a pre­vi­ous es­ti­mate of 3.28 per­cent.

Turnover was mod­er­ate on Wed­nes­day as traders waited for the re­lease later in the day of the min­utes of its last pol­i­cy­mak­ing meet­ing in late July, hop­ing for ad­di­tional hints on the mon­e­tary pol­icy the Fed will pur­sue in the com­ing months.

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