Green­back closes higher at NT$32.770 on Taipei forex

The China Post - - TAIWAN BUSINESS -

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.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.