South Korean won up as US dollar ends day lower on Taipei forex
CNATAIPEI -- The U.S. dollar fell against the New Taiwan dollar Friday, shedding NT$0.005 to close at NT$29.955 as a rising South Korean won led most regional currencies to move higher, dealers said.
August 10, 2013, 12:08 am TWN
Investor interest in the currencies reflected growing optimism toward the regional economy after China reported stronger economic data, including manufacturing and service activity figures, they said.
Losses suffered by the greenback against the Taiwan dollar were limited, however, as traders saw foreign institutional investors unloading holdings in the local share market, dealers said.
The greenback opened at the day's high of NT$29.960, and moved to a low of NT$29.882 before rebounding. Turnover totaled US$455 million during the trading session.
The U.S. dollar continued its downtrend in the wake of the strength of other regional currencies, particularly the won, soon after the local foreign exchange market opened, dealers said.
Traders in the region bought into non-U.S. dollar currencies amid dissipating concerns over China's economy, brought on by the country's latest manufacturing and service activity data, they said.
China's purchasing managers' index (PMI) for manufacturing in July rose 50.3 from the 50.1 recorded in June, while the PMI for services grew to 54.1 from 53.9 over the same period. A number over 50 indicates expansion.
In addition, the People's Bank of China raised the reference rate for the Chinese yuan in exchange for the U.S. dollar by 0.06 percent, a move which inspired confidence that Beijing will allow more room for its currency to appreciate, dealers said.
A stronger yuan also added downward pressure on the U.S. dollar in the local foreign exchange market, they said.
Foreign institutional selling in local stock market, however, lowered demand for the Taiwan dollar to lend some support for the greenback, they said.
On Friday, foreign institutional investors served as net sellers of NT$8.19 billion (US$273 million) in local shares, sending the weighted index of the Taiwan Stock Exchange down 0.65 percent.