US dol­lar closes lower on forex at NT$32.872

The China Post - - TAIWAN BUSINESS -

The U. S. dol­lar fell against the New Tai­wan dol­lar Wed­nes­day, shed­ding NT$0.065 to close at NT$ 32.872 as the strength of other cur­ren­cies in the re­gion en­cour­aged traders here to buy into the lo­cal cur­rency, deal­ers said.

The U.S. dol­lar saw ad­di­tional down­ward pres­sure in the wake of a strong show­ing on the lo­cal eq­uity mar­ket be­fore Tai­wan’s Cen­tral Bank stepped in to slow the pace of the New Tai­wan dol­lar’s de­pre­ci­a­tion, the deal­ers said.

It was the sec­ond con­sec­u­tive ses­sion in which the U.S. dol­lar ended be­low the NT$33 mark, de­spite the cen­tral bank’s in­ter­ven­tion.

The green­back opened at the day’s high of NT$ 32.940 and moved to a low of NT$32.576 be­fore re­bound­ing. Turnover to­taled US$708 mil­lion dur­ing the trad­ing ses­sion.

The U.S. dol­lar opened higher on a tech­ni­cal re­bound from losses seen a ses­sion ear­lier, but soon faced selling as in­vestors took cues from gains posted by other re­gional cur­ren­cies, such as the South Korean won and the Ja­panese yen, to raise their hold­ings in the New Tai­wan dol­lar, the deal­ers said.

Buy­ing in the re­gional cur­ren­cies re­sulted from for­eign fund in­flows as for­eign in­vestors were bet­ting that the U.S. Fed­eral Re­serve is not in a hurry to raise its key in­ter­est rates af­ter Washington re­ported dis­ap­point­ing non­farm pay­roll data for Septem­ber, they said.

A net buy of NT$5.58 bil­lion (US$170 mil­lion)-worth of lo­cal shares on the main board by for­eign in­sti­tu­tional in­vestors also prompted traders to buy into the New Tai­wan dol­lar and dragged down the U.S. dol­lar fur­ther, the deal­ers said.

On the back of strong for­eign in­sti­tu­tional buy­ing, the weight- ed in­dex on the Tai­wan Stock Ex­change closed up 1.20 per­cent Wed­nes­day.

The U. S. dol­lar fell be­low the NT$ 32.60 mark at one point dur­ing the Wed­nes­day ses­sion and the weak­ness led the lo­cal cen­tral bank to jump onto the trad­ing floor in a bid to prop up the green­back, the deal­ers said.

How­ever, the New Tai­wan dol­lar is ex­pected to turn weaker again as the lo­cal cur­rency could move on a down­trend at a time when the lo­cal econ­omy is strug­gling to main­tain a pace of 1 per­cent growth for 2015 due to worse-than-ex­pected ex­port per­for­mance, the deal­ers added.

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