US dollar closes lower on forex at NT$32.872
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.