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US dollar dips to NT$30.035 on Taipei forex

TAIPEI -- The U.S. dollar fell against the New Taiwan dollar Friday, shedding NT$0.010 to close at NT$30.035 as other regional currencies extended their gains, which encouraged traders here to pick up the local currency, dealers said.

Interest in the regional currencies, spurred by greater confidence in the regional economy, helped push the U.S. dollar into negative territory for the second consecutive session on the local foreign exchange market, dealers said.

However, the gains posted by the New Taiwan dollar were limited by the local central bank's intervention in a bid to slow down the pace of the local currency's appreciation and protect Taiwan-made goods in the global market, dealers said.

The greenback opened at the day's high of NT$30.047, and moved to a low of NT$29.953 before rebounding. Turnover totaled US$635 million during the trading session.

The U.S. dollar opened higher against the New Taiwan dollar on a mild technical rebound but soon fell into the red as traders took cues from the strength of other regional currencies, in particular the won, and cut their greenback holdings, dealers said.

Local exporters and foreign banks operating in Taiwan stood on the sell side, which placed downward pressure on the U.S. dollar, dealers said.

The won, which rose 0.42 percent against the U.S. dollar at one point, extended its momentum from the previous day after South Korea's central bank lowered its key interest rate to help boost the economy.

That move sparked market confidence in the South Korean economy and that of the wider region, dealers said.

Foreign institutional buying in the local market spurred selling in the U.S. dollar before the central bank's intervention. On the main board, foreign institutional investors served as net buyers of NT$964 million (US$32.13 million) worth of local shares.

Overnight, Washington reported worse-than-expected weekly jobless claims, which prompted traders here to think that the U.S. Federal Reserve will not raise interest rates sooner than expected, dealers said. Amid expectations of high liquidity, traders are anticipating an uptrend in the regional currencies, dealers said.

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