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