US dollar closes higher on Taipei forex on central bank intervention
CNATAIPEI, Taiwan -- The U.S. dollar rose against the Taiwan dollar Wednesday, gaining NT$0.008 to close at NT$30.047 after moving in a narrow range in thin trade, dealers said.
December 26, 2013, 12:13 am TWN
In the late trading session, the local central bank stepped in as it has done recently to prop up the U.S. dollar and push the Taiwan dollar down at the end of the session.
It was the 12th consecutive session that the U.S. dollar posted gains against the Taiwan dollar and the third consecutive day that the U.S. currency closed above the NT$30.00 mark.
Buying from foreign banks was sparked by the U.S. Federal Reserve's Dec. 18 announcement that it would cut its monthly bond-buying program starting with a US$10 billion reduction in January, they said.
Selling in the greenback from local exporters emerged to offset foreign banks' purchasing as seasonal fund demands from Taiwanese firms rose with the year coming to an end, dealers said.
A mild technical rebound staged by the local market added downward pressure on the U.S. dollar ahead of the local central bank's intervention, they said.
Despite the central bank's presence, trading volume fell since many foreign traders were away from the trading floor for Christmas, dealers said, adding that the market is expected to remain quiet until after the New Year's Day due to their absence.