US dollar sinks to NT$29.466 in Taipei on gains from SK won
CNATAIPEI--The U.S. dollar fell against the New Taiwan dollar Tuesday, shedding NT$0.016 to close at NT$29.466 as traders took cues from the strength of the South Korean won to raise their local currency holdings, dealers said.
October 23, 2013, 12:08 am TWN
Foreign institutional investors moved more funds into the local stock market, adding downward pressure on the U.S. dollar throughout the session, they said.
The losses suffered by the U.S. dollar were limited by the local central bank's intervention, which aimed to slow down the pace of the New Taiwan dollar's appreciation, they added.
The greenback opened at NT$29.480 and moved between NT$29.380 and NT$29.490 before the close. Turnover totaled US$519 million during the trading session.
The U.S. dollar opened slightly lower against the New Taiwan dollar in the wake of the rising won, which hit a nine-month high at one point, with the dollar's weakness continuing throughout the session.
The gains of the South Korean currency come amid expectations that the U.S. Federal Reserve will delay an exit from its monthly US$85 billion bond-buying program, meaning foreign investors could continue to pump funds into East Asia to lift the value of regional currencies, they said.