US dollar ends trading higher on Taipei forex
July 26, 2013, 1:03 pm TWN
TAIPEI -- The U.S. dollar rose against the New Taiwan dollar Thursday, gaining NT$0.036 to close at NT$29.978 as it appreciated for the second consecutive session, dealers said.
A weakening local bourse placed downward pressure on the New Taiwan dollar based on falling demand for the unit, while the weakness of other regional currencies such as the Chinese yuan and the South Korean won spurred selling in the New Taiwan dollar as traders here raised their holdings in the greenback, dealers said.
The U.S. dollar opened at NT$30.030 and moved between NT$29.892 and NT$30.035 before the close. Turnover totaled US$851 million during the trading session.
The greenback extended its losses from the previous session soon after the local foreign exchange market opened as traders took cues from the losses posted by the local bourse, dealers said.
The local stock market ended down 0.39 percent after moving in consolidation mode as selling focused on large-cap old economy stocks, while select electronics heavyweights remained resilient.
A move by the People's Bank of China to lower the yuan's exchange reference rate against the U.S. dollar by 0.1 percent to 6.1759 yuan halted the Chinese currency's two-day appreciation against the greenback.
The lower yuan gave a strong hint to traders here to cut their New Taiwan dollar holdings, as they were betting that Chinese authorities would further depress the yuan to boost exports after China's recent disappointing economic data, dealers said.
A rising won, which rebounded for the first time in five days as South Korean importers shifted to the sell side, increased the downward pressure on the New Taiwan dollar, they said.
However, some local exporters jumped into the trading floor to buy the New Taiwan dollar as they tried to lock in a favorable exchange rate by taking advantage of the U.S. dollar's appreciation, which let some air out of the greenback, dealers said.