Taiwan dollar hits six-month low against US dollar
By Kathryn Chiu, The China Post
January 24, 2014, 12:06 am TWN
TAIPEI, Taiwan -- On the eve of a U.S. monetary policy review, the New Taiwan dollar (NT) on Thursday shed NT$0.09 to close at a six-month low of NT$30.410 on a turnover of US$873 million.
As it has done recently, the Central Bank yesterday kept buying U.S. dollars, adding to the downward pressure on the NT exchange rate against the greenback on the Taipei forex.
With only four trading sessions left in the local foreign exchange market ahead of the Chinese New Year holiday, which will start on Jan. 30, local exporters' selling in the U.S. dollar is expected to continue, with central bank intervention likely to follow, dealers told the United Evening News.
Along with NT, the falls in other regional units showed market expectations that the U.S. Fed will further scale back its fund injections in a policymaking meeting scheduled for Jan. 28-29, dealers told the Central News Agency (CNA).
At the end of the session, the U.S. dollar rose against the Taiwan dollar gaining NT$0.09 to close at the day's high of NT$30.410 as local central bank buying helped the U.S. currency recoup earlier losses, dealers said.
The greenback opened at NT$30.350 and moved to a low of NT$30.080 before rebounding. Turnover totaled US$873 million during the trading session.
In the last Fed meeting, which wrapped up on Dec. 18, 2013, the U.S. central bank cut its monthly bond-buying program by US$10 billion to US$75 billion.