Greenback closes higher at NT$32.770 on Taipei forex
The U.S. dollar rose against the New Taiwan dollar Thursday, gaining NT$0.005 to close at NT$32.770 after Taiwan’s central bank jumped into the market to prop up the U.S. currency, helping the greenback recoup its earlier losses, dealers said.
The gains posted by the U.S. dollar Thursday stopped a two-losing session streak for the U.S. currency.
The central bank’s intervention offset the downward pressure on the U.S. dollar, resulting from further fund inflows into Taiwan and a strong rebound staged by the local equity market, they said.
The greenback opened at NT$32.770, and moved between NT$32.302 and NT$32.775 before the close. Turnover totaled US$1.252 billion during the trading session.
The U.S. dollar opened higher against the New Taiwan dollar on a technical rebound from a slump seen a session earlier, but soon faced downward pressure to fall to negative territory as traders here took hints from further fund inflows into Taiwan to pick up the local currency, dealers said.
Fund inflows into the country became more visible after the People’s Bank of China cut its benchmark one-year lending rate by 0.25 percentage points and the bank reserve requirements by 0.50 percentage points Tuesday. The rate created spill-over effects, which led excessive funds in China to move to other countries in the region.
The South Korean won posted gains due to fund inflows, and the won’s gains gave another strong hint to currency traders here to raise their New Taiwan dollar holdings, while the significant gains posted by local shares also boosted demand for the local currency, dealers said.
The weighted index on the Taiwan Stock Exchange closed up 1.41 percent Thursday on the back of a 3.95 percent increase posted by the Dow Jones Industrial Average overnight.