US dollar finishes day at NT$30.252 in Taipei
January 10, 2014, 12:17 am TWN
TAIPEI--The U.S. dollar rose against the Taiwan dollar Thursday, gaining NT$0.012 to close at NT$30.252 as the local central bank's intervention helped the greenback reverse its earlier losses, dealers said.
The central bank's buying in the U.S. dollar offset the impact from local exporters' selling of the unit in exchange for the Taiwan dollar to meet fund demands as the Lunar New Year holiday approaches at the end of the month, they said.
Expectations that the U.S. Federal Reserve will further cut back its monthly bond buying program in the next policymaking meeting have made traders at home and abroad cautious, they added.
The greenback opened at NT$30.260, moving between NT$30.060 and NT$30.270 before the close. Turnover totaled US$857 million during the trading session.
The opening was higher thanks to a technical rebound from the losses seen a session earlier, but selling followed with local exporters rushing to buy the Taiwan dollar by taking advantage of the recent falls of the local unit, dealers said.
Exporters are expected to continue to buy into the Taiwan dollar amid rising fund demands, as many businesses dole out bonuses to their employees around the Lunar New Year.
The strength of some other regional currencies, such as South Korea's won, the Singapore dollar and the Thai baht, added downward pressure on the U.S. dollar in the foreign exchange market, dealers said.
Regional currencies staged a rebound as traders locked in a better exchange rate to change the U.S. dollar into regional units after their recent weakness, dealers said.
In particular, the won's rebound served as an indication that the currencies had been oversold and it was time to bounce back, they said.
Dealers said the local central bank stepped in, as it has done recently, in the late session to push the Taiwan dollar down in a bid to prop up global competitiveness as the country's exports in 2013 rose only 0.7 percent from a year earlier.