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

2017/05/19 18:55:51 fontsize-small fontsize-default fontsize-big
U.S. dollar closes lower on Taipei forex (update)

Taipei, May 19 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.015 to close at NT$30.210 as the U.S. currency gave up earlier gains with traders here cutting their holdings in the wake of a stronger South Korean won, dealers said.

The U.S. dollar stopped a two-session gaining streak on Friday, but still appreciated about 0.03 percent against the Taiwan dollar for the week.

The greenback opened at NT$30.285 and moved between NT$30.170 and NT$30.290 before the close. Turnover totaled US$649 million during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar continued to trend higher on follow-through buying on the back of further losses in the local equity market, as foreign investors stood on the sell side for equities, the dealers said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$1.23 billion (US$40.71 million)-worth of shares on the main board, sending the weighted index down 0.22 percent by Friday's close.

In addition, improving manufacturing activity in the U.S. market, with the Philadelphia Federal Reserve business index rising to 38.8 in May from April's 22.0, also served as a driver for the gains of the U.S. dollar against the Taiwan dollar, the dealers said.

The momentum of the U.S. dollar, however, then disappeared, as currency traders were encouraged by a won rebound to buy into the Taiwan dollar, in particular in the afternoon session, they added.

The won's gains were simply technical in nature, and market sentiment toward the currencies in the region remained cautious, since many currency traders still focused on the political turmoil in Washington, the dealers said.

U.S. President Donald Trump reportedly interfered in an investigation into a former national security advisor for the connections between the president's campaign and administration and Russia, an accusation he denies.

(By Frances Huang)
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