US dollar closes higher on Taipei forex, hits NT$30.127
CNATAIPEI--The U.S. dollar rose against the New Taiwan dollar Thursday, gaining NT$0.035 to close at the day's high of NT$30.127 after the greenback recouped its earlier losses with help from the local central bank, dealers said.
August 23, 2013, 12:01 am TWN
In the wake of a sell-off in other regional currencies such as the South Korean won, the Thai baht and the Indonesian rupiah, the local central bank aggressively bought into the U.S. dollar, helping to vault the currency back to the NT$30 mark, dealers said.
The U.S. dollar closed above that level for the seventh consecutive session as the central bank attempted to prevent the New Taiwan dollar from rising, so as to maintain the price of Taiwan products in the global market.
The greenback also finished at the highest level since Aug. 2, when it closed at NT$30.129.
The U.S. dollar opened at NT$30.120 Thursday, and moved between NT$29.960 and NT$30.127 before the close. Turnover totaled US$705 million during the trading session.
The U.S. currency regained its footing soon after the local foreign exchange opened, on hopes of an early exit by the U.S. Federal Reserve from its massive bond buying program, but lost momentum as local exporters sold the currency in exchange for the Taiwan dollar, dealers said.
Before the central bank intervened, a higher Chinese yuan also lent support to the Taiwan dollar as a preliminary reading of the purchasing mangers' index released by HSBC and Markit Economics showed an expansion of China's manufacturing activity in August.
As it has done in recent sessions, the central bank jumped onto the trading floor and seized on the weakness of other regional currencies as a reason to help reverse the U.S. dollar's losses, dealers said.
The won was affected by foreign institutional selling in the Seoul equity market, while the rupiah fell to its lowest level in more than four years and the Thai baht dropped to a three-year low on outflows of foreign funds.
Despite the central bank's intervention, turnover remained moderate as many traders stayed on the sidelines, waiting for the outcome of a three-day annual conference of global central bankers, which was scheduled to begin in Jackson Hole, Wyoming, later in the day, dealers said.