Green­back closes lower against NT dol­lar on forex at NT$33.128

The China Post - - LOCAL -

The U.S. dol­lar fell against the New Tai­wan dol­lar Wed­nes­day, shed­ding NT$0.164 to close at NT$ 33.128 as lo­cal ex­porters dumped the green­back in ex­change for the lo­cal cur­rency to meet their end-of-quar­ter New Tai­wan dol­lar fund­ing needs, deal­ers said.

The strength of other re­gional cur­ren­cies also led to selling in the U.S. dol­lar in Tai­wan be­fore the coun­try’s cen­tral bank in­ter­vened to prop up the U.S. cur­rency and help it re­cover some of its ear­lier losses at the close, they said.

The green­back opened at NT$33.300, and moved be­tween NT$32.859 and NT$33.305 be­fore the close. Turnover to­taled US$1.016 bil­lion dur­ing the trad­ing ses­sion.

The U.S. dol­lar opened higher against the New Tai­wan dol­lar on fol­low-through buy­ing from a ses­sion ear­lier, but soon fell into neg­a­tive ter­ri­tory on ris­ing de­mand for the lo­cal cur­rency from Tai­wanese ex­porters, deal­ers said.

Sea­sonal fund de­mand was par­tic­u­larly strong be­cause of pent-up de­mand from ex­porters seek­ing to sell their U.S. dol­lars that built up when the for­eign ex­change mar­ket was closed Mon­day and Tues­day be­cause of a na­tional hol­i­day and a typhoon, they said.

Traders here were also en­cour­aged by the gains posted by other cur­ren­cies in the re­gion, in par­tic­u­lar the South Korean won, which made a tech­ni­cal re­bound from a re­cent slump, to in­crease their hold­ings of the New Tai­wan dol­lar, they said.

A move by the Peo­ple’s Bank of China to raise the Chi­nese yuan’s ref­er­ence rate against the U.S. dol­lar pushed the yuan higher, which led traders here to bid the New Tai­wan dol­lar higher, deal­ers said.

Af­ter the U.S. dol­lar fell be­low the NT$32.90 mark, how­ever, Tai­wan’s cen­tral bank stepped in, and its in­ter­ven­tion was most ev­i­dent late in the trad­ing ses­sion when the green­back vaulted back above the NT$33 level at the close, deal­ers said.

It was the fourth con­sec­u­tive ses­sion in which the U.S. dol­lar closed above the NT$33 mark in the lo­cal for­eign ex­change mar­ket.

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