US dol­lar closes higher at NT$33.156 on forex

The China Post - - BUSINESS -

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.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.