US dollar finishes trading lower on Taipei forex
CNATAIPEI--The U.S. dollar fell against the Taiwan dollar yesterday, shedding NT$0.017 to close at NT$29.656 as foreign institutional investors shifted to the buy side on the local bourse to boost demand for the local currency, dealers said.
September 28, 2013, 12:05 am TWN
The repatriation of funds by local exporters from their overseas production bases back to Taiwan also added downward pressure on the greenback, they said.
As it has done in recent sessions, Taiwan's central bank intervened to bolster the U.S. dollar, helping the unit recoup most of its earlier losses and capping the gains posted by the Taiwan dollar, they said.
The greenback opened at the day's high of NT$29.705 and moved to a low of NT$29.530 before rebounding. Turnover totaled US$796 million during the trading session.
The U.S. dollar opened higher on a technical rebound from the losses incurred a session earlier, but selling followed as traders saw foreign institutional investors buy into Taiwan's stock exchange, dealers said.
Foreign investors bought a net NT$4.48 billion (US$151 million) in shares on the stock market, helping push the benchmark Taiex index up 0.56 percent to 8,230.68.
The buying showed that foreign investors were continuing to move funds into the region after the U.S. Federal Reserve surprised global markets by deciding at a Sept. 17-18 policymaking meeting to leave its quantitative easing program unchanged, dealers said.
Foreign investors had been net buyers of shares in Taiwan for 20 consecutive sessions before selling a net NT$25.23 million in shares on Thursday. The Taiwan dollar appreciated by about 1 percent during the streak.
Taiwanese exporters joined foreign investors in selling the greenback Friday, repatriating U.S. dollars they earned overseas back to Taiwan for accounting purposes as the third quarter comes to an end, they said.
Pressure on the U.S. dollar in Taiwan's foreign exchange market was limited to some extent by its early strength against the South Korean won, which faced downward pressure due to a lower than-expected current account surplus in August.
The won, however, recovered its earlier losses against the greenback late in the trading day in Seoul on hopes of more fund inflows.