US dollar closes higher at NT$33.156 on forex
The U.S. dollar rose against the New Taiwan dollar Friday, gaining NT$0.076 to close at the day’s high of NT$33.156 amid cautious sentiment ahead of the release of U.S. non-farm payroll data, dealers said.
Along with the local central bank’s further intervention to prop up the U.S. dollar, a move by foreign investors to expatriate funds out of the country gave another boost to the U.S. dollar and dragged down the New Taiwan dollar, they said.
The greenback opened at NT$33.090, and moved to the day’s low of NT$32.800 before rebounding. Turnover totaled US$947 million during the trading session.
In the early morning session, traders here rushed to lock in the gains posted by the U.S. dollar in recent sessions to boost the New Taiwan dollar and then the pair moved in a narrow range prior to Washington’s release of the September job data due later in the day, dealers said.
After the U.S. Federal Reserve left its key interest rate unchanged in its September policymaking policy, the market has anticipated that the U.S. central bank will raise interest rates in December as Fed Chair Janet Yellen has said that her institution remains on track to kick off an interest rate hike cycle by the end of this year.
The Fed will hold two more poli- cymaking meetings before the end of the year, one in October and the other in December.
Therefore, currency traders at home and abroad have been nervously waiting for the upcoming jobless data from the U.S., which could serve as one of the most important indications to when and how the Fed will adjust its monetary policy, they said.
While market sentiment turned very cautious before the U.S. job data, some foreign banks, including two U.S. banks and one Japanese bank, moved their funds out of the country, betting that a Fed rate hike cycle will come soon to give a boost to the U.S. dollar, dealers said.