US dollar rises, closes higher at NT$32.772 on the Taipei forex
The U.S. dollar rose against the New Taiwan dollar Friday, gaining NT$0.002 to close at NT$32.772 as the greenback recouped its early losses to return to positive territory on the back of further intervention by Taiwan’s central bank, dealers said.
The local central bank’s buying helped offset the effects of a strong technical rebound by the local equity market, which lowered demand for the New Taiwan dollar, dealers said.
The greenback opened at NT$32.770 and moved between NT$32.240 and NT$32.775 before the close. Turnover totaled US$1.001 billion during the trading session.
The U. S. dollar opened flat against the New Taiwan dollar but soon faced selling and traders here were motivated by a strong showing on the local equity market to pick up the local currency, dealers said.
According to the Taiwan Stock Exchange (TWSE), the weighted index closed up 2.48 percent at 8,019.18 Friday in reflection of a soaring Wall Street overnight, after foreign institutional inves- tors bought a net NT$4.21 billion (US$128 million) worth of local shares on the main board.
The strength of the South Korean won, which is closely followed by traders here to map out their trading strategies for the New Taiwan dollar, also boosted the New Taiwan dollar, dealers said.
The won posted gains as the equity market in Seoul also rebounded strongly.
A decision by People’s Bank of China to raise the Chinese yuan’s reference rate against the U.S. dollar by 0.15 percent, the biggest hike in five months, added downward pressure on the U.S. dollar in the local foreign exchange market, they said.
The U.S. dollar breached the NT$32.3 mark and rose to the day’s high at one point, but the central bank’s buying became apparent late in the trading session, helping the greenback to close above the previous level, dealers said.
As Taiwan is faced with weakening global demand, the local central bank is expected to continue its efforts to keep the New Taiwan dollar cheaper in a bid to protect Taiwanese exports, dealers said.