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

2017/08/11 19:58:55 fontsize-small fontsize-default fontsize-big
U.S. dollar closes higher on Taipei forex (update)

Taipei, Aug. 11 (CNA) The U.S. dollar rose against the Taiwan dollar Friday, gaining NT$0.049 to close at NT$30.358 as lingering concerns over tension between North Korea and the United States prompted traders here to move more of their funds into U.S. dollar-denominated assets, dealers said.

Heavy selling by foreign institutional investors in the local equity market was also attributed to the fall suffered by the Taiwan dollar, pushing up the U.S. dollar for the third consecutive session, the dealers said.

For the week, the U.S. dollar closed up NT$0.138, or 0.45 percent against the Taiwan dollar.

The greenback opened at NT$30.360 on Friday and moved between NT$30.330 and NT$30.415 before the close. Turnover totaled US$763 million during the trading session.

The dealers said that soon after the local foreign exchange market opened, the impact of the tension between Pyongyang and Washington continued to weighed upon the Taiwan dollar, giving a boost to the U.S. dollar.

Fears in the currency market have been escalated as U.S. President Donald Trump has toughened his rhetoric against North Korea, which has threatened to launch a missile strike on U.S. Pacific territory Guam, the dealers added.

Currency traders in the region parked their funds into the U.S. dollar for hedging purposes, dragging down regional currencies, including the South Korean won, which the Taiwan dollar follows closely.

The won fell about 0.4 percent against the U.S. dollar, giving a clear indication to traders here to cut their holdings in the Taiwan dollar, the dealers said.

The U.S. dollar got another boost from large foreign institutional selling in the local equity market, the dealers added.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$9.16 billion (US$302 million)-worth of shares on the main board Friday.

The gains posted by the U.S. dollar were capped in the afternoon session as local exporters sold their greenbacks in exchange for more Taiwan dollars, taking advantage of the U.S. unit's upturn, the dealers said.

(By Chiu Po-sheng and Frances Huang)
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