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

2017/10/11 17:29:59 fontsize-small fontsize-default fontsize-big
U.S. dollar closes lower on Taipei forex (update)

Taipei, Oct. 11 (CNA) The U.S. dollar fell against the Taiwan dollar Wednesday, shedding NT$0.144 to close at NT$30.232, as other regional currencies also made gains against the U.S. unit, dealers said.

Strong foreign institutional buying in local equities also helped boost the Taiwan dollar and drag the U.S. dollar to its lowest closing since Sept. 26, when it ended at NT$30.126, dealers said.

The greenback opened at NT$30.300 and moved between NT$30.214 and NT$30.320 before the close. Turnover totaled US$607 million during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar came under pressure as traders began buying into the Taiwan dollar, motivated by the strength of other currencies in the region, dealers said.

The strong buying in regional currencies reflected a drop Tuesday in the U.S. dollar index, which tracks the currencies of the United States' six major trading partners, amid uncertainty about the planned tax reform in the U.S., dealers said.

The buying was also prompted by an increase in the Chinese yuan's reference rate against the U.S. dollar to the highest level in more than four months, dealers said.

The U.S. dollar also came under pressure due to a strong showing by the local equity market on the back of aggressive foreign institutional buying, which was focused largely on market heavyweights in the high-tech sector, dealers added.

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$9.53 billion (US$315 million) worth of shares on the main board Wednesday, pushing the weighted index up 1.03 percent by the close.

However, the gains posted by the Taiwan dollar were capped to some extent as Taiwanese importers stood on the buy side of the U.S. dollar, take advantage of its lower exchange rate, dealers said.

(By Frances Huang)
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