US dollar rises to close at NT$29.920 against TWD
CNATAIPEI--The U.S. dollar rose against the New Taiwan dollar Tuesday, gaining NT$0.02 to close at the day's high of NT$29.920 after the local central bank stepped in to help the greenback recoup its early losses, dealers said.
September 4, 2013, 2:20 am TWN
Despite the central bank's intervention, the U.S. dollar stayed below the NT$30 mark against the Taiwan dollar as foreign institutional investors kept moving funds into the local market, the dealers said.
The greenback opened at NT$29.900 and moved to a low of NT$29.705 before rebounding. Turnover totaled US$835 million during the trading session.
Ahead of the central bank's intervention, the U.S. dollar continued a downtrend as traders took hints from the local market's momentum to buy into the Taiwan dollar while dumping the greenback, the dealers said.
Foreign institutional investors served as net buyers of NT$7.7 billion (US$257 million)-worth of local shares, in particular financial stocks, to push the weighted index on the Taiwan Stock Exchange up 0.61 percent at the end of the session.
While some countries in the Asian region such as India and Indonesia suffered an exodus of foreign funds, which hammered their currencies, foreign investors still favored other Asian countries, like Taiwan and South Korea, which enjoy sound fundamentals, the dealers said.
They said that Taiwan's large foreign exchange reserves, pointing to the country's stable financial conditions, made it look attractive to foreign investors. The country's foreign exchange reserves as of the end of July stood at US$409.12 billion, up from US$406.61 billion in June.