Moderate trading boosts dollar to end at NT$30.066 in Taipei
June 18, 2014, 12:00 am TWN
TAIPEI, Taiwan -- The U.S. dollar rose against the Taiwan dollar Tuesday, gaining NT$0.005 to close at NT$30.066 in moderate trading as many traders stayed on the sidelines ahead of an upcoming U.S. Federal Reserve policymaking meeting, dealers said.
The local central bank stepped in, as it has done almost every session recently, to prop up the U.S. dollar, helping the currency back up to the NT$30.00 level at the close in a bid to boost Taiwan's exports, they said.
The greenback opened at NT$30.065 and moved between NT$29.992 and NT$30.069 before the close. Turnover totaled US$593 million during the trading session.
The U.S. dollar opened higher on follow-through buying, but it soon fell to the red as traders were encouraged by foreign institutional buying in the local bourse to raise their Taiwan dollar holdings, dealers said.
Riding the wave of interest in the bellwether electronics sector, the weighted index on the Taiwan Stock Exchange closed up 0.4 percent at 9,240.60 after foreign institutional investors served as net buyers of NT$3.78 billion (US$126 million) worth of local shares.
The foreign buying sparked an upswing of the Taiwan dollar before the central bank's intervention, dealers said. On Monday, foreign investors bought a net NT$5.14 billion worth of local shares.
Despite the central bank's intervention, trading volume of the local foreign exchange market remained moderate before the results of the Fed's two day policymaking meeting, set to kick off later in the day, dealers said.