US dollar closes unchanged at NT$29.842 on Taipei forex
CNATAIPEI, Taiwan -- The U.S. dollar closed unchanged from a session earlier at NT$29.842 Saturday in the local foreign exchange market, while turnover shrank, with many foreign traders away from the trading floor for the weekend, dealers said.
September 15, 2013, 12:08 am TWN
Taipei was the only foreign exchange market to trade, to make up for lost trading sessions during next week's Mid-Autumn Festival holiday.
As it has done in recent sessions, the local central bank intervened again to prop up the U.S. dollar and helped the currency reverse its earlier losses against the Taiwan dollar at a time when many local business leaders have been urging the central bank to bring down the value of the local currency for export growth, the dealers said.
The greenback opened at NT$29.840 and moved to a low of NT$29.670 before rebounding. Turnover totaled US$271 million during the trading session.
Ahead of the central bank's intervention, the U.S. dollar continued its downtrend against the Taiwan dollar as traders here took cues from further foreign institutional buying in the local bourse, which lifted demand for the local unit, the dealers said.
In the local bourse, foreign institutional investors served as net buyers of NT$1.53 billion (US$51.27 million)-worth of local shares.
As other currency markets in the world were closed for the weekend, the U.S. dollar moved in a narrow range on a lack of fresh leads from other regional currencies, the dealers said.
With foreign traders sidelined for the weekend, turnover in the local foreign exchange market fell sharply so there was no need for the local central bank to make great efforts to fend off upward pressure on the Taiwan dollar during its intervention, they said.