NT dollar flat as uncertainty levels trade
Noah Weston, Special to The China Post
October 26, 2001, 12:00 am TWN
The Taiwan unit ended unchanged against the U.S. dollar at the Wednesday close of NT$34.545 yesterday, as equity inflows offset the effects from a weakening yen. Volume was up to US$273 million from US$215 million on Wednesday.
Even though the greenback gained on the yen yesterday, local players "were unwilling to push the U.S. dollar higher ... and there were many more offers than bids," said a dealer at a foreign bank in Taipei.
The yen was down to Y123.15 from Y122.90 late Wednesday in the New York currency market.
Most of the demand for the local currency came from foreign institutional investors, who poured net NT$3.36 billion into the local stock market, according to dealers. Foreign capital has been flowing into the market this week with net purchases totaling NT$5.1 billion on Wednesday alone.
Uncertainty in the Taiwan economic situation helped keep trade tentative, though there was some buying of the U.S. dollar later in trade, said dealers.
The central bank also stepped in to bring the local unit off of an intraday high of NT$34.517 in late morning trade.
The NT dollar is expected to trade between NT$34.520 and NT$34.550 on Friday.