U.S. dollar ends 4 day rising streak on Taipei forex market

2018/04/17 19:00:11 fontsize-small fontsize-default fontsize-big
U.S. dollar ends 4 day rising streak on Taipei forex market

Taipei, April 17 (CNA) The U.S. dollar fell against the Taiwan dollar Tuesday, dropping NT$0.063 to close at NT$29.362, ending a four-day rising streak, as currency traders took cues from the strength of other regional currencies, dealers said.

The decline came after the U.S. dollar rose to a three-month high against the Taiwan dollar a day earlier due to a foreign fund exodus from Taiwan caused by several factors such as a live-fire military exercise planned by China's People's Liberation Army in the Taiwan Strait for Wednesday, and concerns over a rate hike by the U.S. Federal Reserves, the dealers said.

The greenback opened at the day's high of NT$29.410 and moved to a low of NT$29.348 before rebounding. Turnover totaled US$652 million during the trading session.

Soon after the local foreign exchange market opened, the U.S. dollar faced a mild technical correction as investors took cues from gains posted by other currencies in the region, including the South Korean won, the dealers said.

The won, which rose more than 0.6 percent against the U.S. dollar, gave a strong hint to traders to shift to the buy side for the Taiwan dollar as the won has been closely watched in the local foreign exchange market.

Although the local equity market took a beating Tuesday, the U.S. dollar still encountered selling as bargain hunters turned active in the foreign exchange market, which boosted the Taiwan dollar, the dealers said.

According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$9.21 billion (US$314 million)-worth of shares on the main board, sending the weighted index down 1.32 percent at the end of Tuesday's session.

The dealers said the latest gains posted by the Taiwan dollar were technical in nature so it is too early to say whether the local currency has returned to an uptrend, since uncertainty over the global financial market remains in place.

(By Frances Huang)
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