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TWD slips against the greenback, remains above NT$30.6

TAIPEI, Taiwan -- Amid the recent freefall of the Chinese yuan, the value of the New Taiwan dollar on Friday went on losing streak, shedding NT$0.063 to close slightly above the NT$30.6 mark at the day's low of NT$30.652.

The Central News Agency (CNA) yesterday reported that the U.S. dollar rose against the local unit Friday, gaining NT$0.063 to close at the day's high of NT$30.652 as traders took cues from further weakness in the Chinese yuan to cut their holdings in the local currency, dealers said.

Fears that the U.S. Federal Reserve will launch an interest rate hike cycle sooner than the market had previously expected continued to weigh on market sentiment toward currencies in the region, including the New Taiwan dollar, the dealers said.

The greenback opened at NT$30.630 and moved to a low of NT$30.572 before rebounding. Turnover totaled US$769 million during the trading session.

The U.S. dollar opened higher on follow-through buying and momentum accelerated in the wake of the yuan's continued downturn, the dealers said.

The Chinese currency fell further after the People's Bank of China (PBOC) cut the reference rate for the yuan again to a new low so far this year for U.S. dollar exchanges, they said.

The PBOC's move was aimed at cooling down speculative buying in the yuan in a bid to force foreign investors to move idle money out of China, the dealers said, adding that the cut in the yuan reference rate is likely to continue to put more downward pressure on other regional currencies.

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