US dollar rises against TWD to end trading at NT$30.092
CNATAIPEI--The U.S. dollar rose against the Taiwan dollar Tuesday, gaining NT$0.06 to close at the day's high of NT$30.092 after moving in consolidation mode, dealers said.
August 21, 2013, 12:01 am TWN
The local central bank entered the trading floor to prop up the greenback to above NT$30 at the end of the session, the dealers said.
It was the sixth consecutive session in which the U.S. dollar closed above the NT$30 mark.
The greenback opened at NT$30.035, and moved to a low of NT$29.940 before rebounding. Turnover totaled US$635 million during the trading session.
The U.S. dollar regained momentum soon after the local foreign exchange market opened as traders took cues from the weakness of several regional currencies such as the Thai baht and the Indonesian rupiah, the dealers said.
The losses posted by the regional currencies showed a move by foreign investors to repatriate their funds back to their home countries amid fears that the U.S. Federal Reserve will scale back its bond-buying program soon, the dealers said.
However, the strength of the U.S. dollar against the Taiwan dollar was offset by selling by local exporters, which dragged down the greenback below the NT$30 level, they said.
Ahead of the release of the minutes of the Fed's latest policymaking meeting held July 30-31, traders in the region tended to hold a cautious attitude about the U.S. central bank's policy, they said.
As traders did not get more clues from the meeting minutes about what the Fed will do next about its monetary policy, the U.S. dollar basically fluctuated in a narrow range throughout the session, despite the local central bank's intervention, the dealers added.
Many traders were expecting the Fed to start scaling back its bond-buying program in mid-September, when the next policymaking meeting is scheduled, they said.