US dollar closes at NT$32.876 on Taipei forex
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.
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.