US dollar tumbles on Taipei's forex to end trading at NT$30.039
June 12, 2014, 12:00 am TWN
TAIPEI--The U.S. dollar fell against the Taiwan dollar Wednesday, shedding NT$0.011 to close at NT$30.039 in reflection of further fund inflows into the country to boost demand for the local currency, dealers said.
The strength of other regional currencies such as the South Korean won added downward pressure on the U.S. dollar in the local foreign exchange throughout the session, they said.
The U.S. dollar, however, recouped most of its earlier losses against the Taiwan dollar as the local central bank stepped in to prop the U.S. unit up in a bid to maintain Taiwan's global competitiveness, they added.
The greenback opened at the day's high of NT$30.050 and moved to a low of NT$29.980 before rebounding. Turnover totaled US$598 million during the trading session.
The U.S. dollar opened flat, but it soon fell to negative territory as traders were encouraged by foreign investors' moves to remit more funds into Taiwan, dealers said.
On the back of rising liquidity, the local bourse reversed its earlier downturn to end slightly higher after foreign institutional investors served as net buyers of NT$2.91 billion (US$96.87 million) worth of local shares, leading to more selling of the U.S. dollar, they said.
A rising won also hit an almost six-year high against the U.S. dollar at one point on the back of foreign fund inflows as major central banks continued to pump funds into the market, dealers said.
In particular, the European Central Bank cut its deposit rates to negative last week, leading foreign funds to continue flooding regional markets and further boosting the value of local currencies, they said.