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

2017/11/10 17:14:27 fontsize-small fontsize-default fontsize-big
U.S. dollar closes lower on Taipei forex (update)

Taipei, Nov. 10 (CNA) The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.008 to close at NT$30.172 as the strength of other regional currencies prompted traders to sell the U.S. currency, dealers said.

Selling in the U.S. dollar reflected worries over potential delays to tax reform in the United States, while foreign institutional selling in local equities helped the U.S. unit recoup part of its earlier losses by the end of the session, they said.

The greenback opened at the day's high of NT$30.182 and moved to a low of NT$30.166 before rebounding. Turnover totaled US$476 million during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar staged a mild technical rebound from its slump the previous session, but then lost steam as traders were motivated by the gains enjoyed by other regional currencies, dealers said.

The U.S. dollar index, which tracks the currencies of Washington's six major trading partners, moved lower as concerns grew that tax reform in the U.S. could be delayed after Senate Republicans came up with a proposal to slash the corporate tax rate from 35 percent to 20 percent until 2019.

Dealers said the possible delay with the corporate tax cut is expected to affect the pace at which the U.S. economy grows in 2018, which prompted currency traders to cut their holdings in the greenback.

In addition, a move by the People's Bank of China to raise the Chinese yuan's reference rate against the U.S. dollar also placed downward pressure on the U.S. unit on the local foreign exchange and gave an additional boost to the Taiwan dollar, dealers added.

However, foreign institutional investors continued to stand on the sell side of the local equity market, giving the U.S. dollar room to recover from an earlier low, dealers said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$1.74 billion (US$57.67 million) worth of shares on the main board Friday, sending the weighted index down 0.10 percent at the close of trading. On Thursday, foreign institutional investors recorded net sales worth NT$3.14 billion.

(By Frances Huang)

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