U.S. dollar closes lower on Taipei forex (update)

2017/03/17 18:39:54 fontsize-small fontsize-default fontsize-big
U.S. dollar closes lower on Taipei forex (update)

Taipei, March 17 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.031 to close at NT$30.626 on increased foreign fund inflows into the country, dealers said.

Strong foreign institutional buying in the local equity market weakened the U.S. dollar throughout the session, causing it to drop for the third consecutive day, dealers said.

The greenback opened at NT$30.560, and moved between NT$30.554 and NT$30.655 before the close. Turnover totaled US$942 million during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar faced follow-through selling from the previous session as traders were encouraged by the U.S. Federal Reserve's decision to raise its key interest rates gradually, dealers said.

After its latest policymaking meeting on Wednesday, the Fed hinted that it would raise interest rates three times in 2017, signaling a more gradual pace than the four rate hikes financial markets had expected.

Following the decision, foreign investors continued to move funds into the local market Friday, which dragged down the U.S. dollar, while foreign banks operating in Taiwan stood on the sell side of the greenback, dealers said.

A stronger equity market in Taiwan on the back of solid foreign buying also led currency traders to cut their holdings in the U.S. dollar, dealers said.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$13.57 billion (US$443 million) worth of shares on the main board Friday, sending the weighted index up 0.72 percent at the close.

(By Frances Huang)
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