US dollar falls against TWD to finish trade at NT$29.615
CNATAIPEI--The U.S. dollar fell against the New Taiwan dollar Tuesday, shedding NT$0.055 to close at NT$29.615 as traders cut their greenback holdings amid concerns over a partial shutdown of the U.S. government, dealers said.
October 2, 2013, 12:09 am TWN
The local central bank, as it has done in recent sessions, intervened to help the U.S. dollar recoup most of its earlier losses toward the end of the session in an attempt to keep the Taiwan dollar cheaper and boost local exporters' global competitiveness, the dealers said.
The greenback opened at the day's high of NT$29.670 and moved to a low of NT$29.500 before rebounding. Turnover totaled US$527 million during the trading session.
The U.S. dollar opened flat but turned weaker amid fears that a standoff in the U.S. Congress would lead to a partial shutdown in the U.S. government, which reduced demand for the currency, the dealers said.
Selling in the U.S. escalated as the deadline for the shutdown loomed larger as investors were afraid that the negative development will threaten the U.S. and even the global economy, they said.
The fears also affected the performance of the greenback in the regional currency market, with the Malaysian ringgit leading its regional counterparts to move even higher as the trading session proceeded, the dealers said.
As concerns over the U.S. economic recovery under the U.S. government shutdown ran deeper, many investors tended to speculate the U.S. Federal Reserve will continue its US$85 billion bond-buying program instead of scaling down the efforts any time soon, they said.
On the back of hopes of further U.S. Fed fund injections, foreign investors kept moving funds into the region, including Taiwan, further propping up the value of the New Taiwan dollar, they added.
After the U.S. dollar trended lower to NT$29.50 against the Taiwan dollar at one point during the session, the local central bank bought into the greenback, the dealers said.
The central bank's move prompted traders to believe the bank will continue its efforts to maintain the U.S. dollar above the NT$29.50 level in the near future, they said.