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

2018/02/13 17:41:43 fontsize-small fontsize-default fontsize-big
U.S. dollar closes lower on Taipei forex market (update)

Taipei, Feb. 13 (CNA) The U.S. dollar fell against the Taiwan dollar Tuesday, shedding NT$0.042 to close at NT$29.358 as a rising Wall Street boosted currency traders' appetite for risk taking by picking up non-U.S. dollar currencies in the region, dealers said.

In addition, seasonal fund demand ahead of the Lunar New Year holiday also placed downward pressure on the U.S. dollar, while the losses suffered by the greenback against the Taiwan dollar were capped by a fall in the Chinese yuan, dealers added.

The U.S. dollar opened at the day's high of NT$29.392, and moved to a low of NT$29.329 before rebounding. Turnover totaled US$584 million during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar faced downward pressure as foreign investors parked their funds in non-U.S. dollar denominated assets with their increased appetite for risk, dealers said.

Their purchases of non-greenback denominated assets came after Wall Street continued a technical rebound on Monday, when the Dow Jones Industrial Average closed up 410.37 points or 1.70 percent at the day's high after IMF Managing Director Christine Lagarde said recent sharp corrections in the U.S. market would not post a major threat to global economic stability.

The solid gains posted on Wall Street encouraged foreign investors to move funds into the region, boosting most regional currencies, including the Taiwan dollar, dealers said.

With the Year of the Rooster coming to an end, many Taiwanese exporters rushed to cut their U.S. dollar holdings in exchange for Taiwan dollars in a bid to meet fund demand, which also pushed down the greenback, dealers added.

However, a move by the People's Bank of China to lower the yuan's reference rate against the U.S. dollar helped the U.S. unit recoup part of its earlier losses by the end of the session, dealers said.

Wednesday is the last trading session of the local foreign exchange market before the New Year holiday. Dealers said seasonal fund demand is expected to continue to bolster the Taiwan dollar in the upcoming session.

(By Frances Huang)

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