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.