US dollar closes higher at NT$32.668 on Taipei forex
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.