US dollar dips to NT$29.665 in Taipei
December 7, 2013, 12:08 am TWN
TAIPEI -- The U.S. dollar fell against the Taiwan dollar Friday, shedding NT$0.025 to close at NT$29.665 in thin trading as many traders stayed on the sidelines ahead of the release of a jobs report in the United States later in the day.
The local central bank, as it has done recently, entered the trading floor late in the session, picking up the U.S. dollar and cutting its Taiwan dollar holdings to help the greenback recoup most of its earlier losses, they said.
The U.S. dollar opened at NT$29.690, and moved between NT$29.570 and NT$29.700 before the close. Turnover totaled an unusually low NT$461 million during the trading session.
The greenback opened unchanged, but downward pressure emerged as traders here took cues from a move by the People's Bank of China to raise the reference rate to a new high for the Chinese yuan in exchange for the U.S. currency, dealers said.
Many traders suspected that the higher reference exchange rate for the yuan showed greater willingness by Chinese authorities to allow the yuan to trade in a wider range, which could boost the value of other regional units, they said.
Despite the downward pressure, the U.S. dollar's fall was limited by weak turnover as many traders were waiting to see the U.S. non-farm payroll data for November due out late Friday night Taiwan time, dealers said.
The anxiety of traders over the job data was running high after Washington reported stronger-than-expected economic growth for the third quarter overnight, escalating fears that the Fed will soon scale back its monthly US$85 billion bond buying program, they said.
With the Fed's next policymaking meeting just over 10 days away on Dec. 17-18, many analysts believe the jobs data will serve as one of the most important indicators of what the central bank might do, dealers said.