US dollar sheds NT$0.074 to finish day at NT$30.053
CNATAIPEI -- The U.S. dollar fell against the New Taiwan dollar for the first time in four days Friday, shedding NT$0.074 to close at NT$30.053 as gains in Taiwan's stock market boosted demand for the local currency, dealers said.
August 24, 2013, 12:00 am TWN
The strength of several other regional currencies also prompted traders here to buy into the New Taiwan dollar throughout the session, they said.
The losses suffered by the greenback were limited, however, after Taiwan's central bank intervened to keep the Taiwan dollar from appreciating too quickly and hurting the country's export competitiveness, dealers said.
Even with the central bank's presence, turnover was moderate as many traders stayed on the sidelines, waiting for the conclusion of the ongoing annual meeting of central bankers in Jackson Hole, Wyoming, which ends Saturday, they said.
The greenback opened at the day's high of NT$30.120 and moved to a low of NT$29.955 before rebounding. Turnover totaled US$621 million during the trading session.
The U.S. dollar lost momentum soon after the Taipei foreign exchange market opened because of early buying momentum on the stock market that was fueled by gains on Wall Street overnight, dealers said.
By the end of the trading day on the stock market at 1:30 p.m., foreign institutional investors had bought a net NT$728 million (US$24.22 million) in shares, in particular large-cap stocks, to propel the benchmark weighted index 0.75 percent higher.
Forex traders in Taipei also followed the lead of a rebound in regional currencies, such as South Korean won and the Indonesian rupiah, against the greenback to lower their U.S. dollar holdings, dealers said.
Buying in the regional currencies reflected improved sentiment toward economic fundamentals after a preliminary reading of the August purchasing mangers' index released by HSBC showed an expansion of manufacturing activity in China, they said.
Taiwan's central bank stepped into the foreign exchange market late in the day, helping the U.S. dollar recoup part of its early losses to close above NT$30 at the end of the session, a level the market believes the bank wanted to maintain, dealers said.