US dol­lar rises, closes higher at NT$32.772 on the Taipei forex

The China Post - - TAIWAN BUSINESS -

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.

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