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

2017/07/14 18:35:29
U.S. dollar closes higher on Taipei forex (update)

Taipei, July 14 (CNA) The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.032 to close at NT$30.417 as the U.S. currency staged a mild rebound, stopping a two-session falling streak, dealers said.

Selling by foreign institutional investors in local equities added downward pressure on the Taiwan dollar and gave an additional boost to the U.S. dollar, the dealers said.

For the week, the U.S. dollar fell NT$0.193 or 0.63 percent against the Taiwan dollar.

The greenback opened Friday at the day's high of NT$30.350 and moved to a low of NT$30.419 before rebounding. Turnover totaled US$685 million during the trading session.

Soon after the local foreign exchange market opened, the U.S, dollar extended its downturn from a session earlier after U.S. Federal Reserve Chairwoman Janet Yellen gave dovish comments on the central bank's rate hike cycle, the dealers said.

In her congressional testimony, Yellen said that as inflation remained low in the U.S. market, the Fed will raise its key interest rates in a gradual manner.

However, the U.S. dollar soon regained its footing against the Taiwan dollar as bargain hunters became active to pick up the greenback by taking advantage of its significant losses seen earlier in the week, the dealers said.

In addition, the local main board fell, led by large-cap electronics stocks, as foreign institutional investors stood on the sell side, pushing down the Taiwan dollar further, the dealers added.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$2.10 billion (US$69.04 million)-worth of shares on the main board, sending the weighted index down 0.16 percent at Friday's close.

Market sentiment remained cautious, which kept turnover moderate ahead of the release of June inflation data expected from Washington later in the day, the dealers said.

(By Chiu Po-sheng and Frances Huang)
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