US dol­lar closes at NT$32.876 on Taipei forex

The China Post - - BUSINESS -

The U.S. dol­lar rose against the New Tai­wan dol­lar Fri­day, gain­ing NT$0.198 to close at the day’s high of NT$32.876, as the lo­cal cur­rency come un­der pres­sure from a plunge in Tai­wan’s eq­uity mar­ket, deal­ers said.

The New Tai­wan dol­lar was also hurt by weak­ness in China’s man­u­fac­tur­ing sec­tor and in­ter­ven­tion by Tai­wan’s cen­tral bank to fur­ther prop up the U.S. dol­lar late in the ses­sion.

The green­back opened at NT$32.710, and moved to a low of NT$32.560 be­fore re­bound­ing. Turnover to­taled US$1.10 dur­ing the trad­ing ses­sion.

The U.S. cur­rency opened higher against the New Tai­wan dol­lar on fol­low-through buy­ing, but fell into neg­a­tive ter­ri­tory as the lo­cal cur­rency staged a mild tech­ni­cal re­bound be­fore a sell-off in Tai­wan’s stock mar­ket re­versed the green­back’s for­tunes.

Ac­cord­ing to the Tai­wan stock ex­change, for­eign in­sti­tu­tional in­vestors sold a net NT$7.33 bil­lion (US$223 mil­lion) in shares in Taipei Fri­day, dump­ing large-cap stocks in the elec­tron­ics and fi­nan­cial sec­tors to send the weighted in­dex down

bil­lion 3.02 per­cent at the close.

The dive in share prices prompted cur­rency traders to cut their hold­ings in the New Tai­wan dol­lar, in­creas­ing de­mand for the U.S. dol­lar, deal­ers said.

The weak­ness of other re­gional cur­ren­cies re­sult­ing from ris­ing con­cerns over China’s econ­omy gave traders here another rea­son to sell the New Tai­wan dol­lar, they said.

Wor­ries over the pace of the China’s eco­nomic growth were re­in­forced by a re­port Fri­day that China’s fac­tory sec­tor con­tracted at its fastest pace in more than six years in Au­gust amid de­clin­ing de­mand both at home and abroad.

Seiz­ing on the weak­ness of other re­gional cur­ren­cies, such as the South Korean won, Tai­wan’s cen­tral bank stepped in again to buy into the U.S. dol­lar, send­ing the New Tai­wan dol­lar even lower at the close, deal­ers said.

Be­cause of the cur­rency de­pre­ci­a­tion com­pe­ti­tion that con­tin­ues to rage in the re­gion, Tai­wan’s cen­tral bank is ex­pected to con­tinue its in­ter­ven­tion to make the New Tai­wan dol­lar even cheaper and help ex­porters re­main com­pet­i­tive in global mar­kets, deal­ers said.

CNA

In this file photo, HTC Corp. is awarded “Best Hard­ware” for the HTC Vive ear­lier this week at Gamescom, a trade fair for video games held an­nu­ally in Ger­many. De­spite win­ning the award, shares came un­der pres­sure and fell to a new low yesterday.

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