New Taiwan dollar falls to 2.5-year low at NT$29.945
The China Post news staff and CNA
December 20, 2013, 12:09 am TWN
The China Post news staff and CNA--The New Taiwan dollar fell against the U.S. dollar yesterday, shedding NT$0.200 to close at 2.5-year low of NT$29.945 as the U.S. Federal Reserve's current quantitative easing tapered off and resulting in elevated market interest in U.S. dollars, dealers said.
According to dealers, the Central Bank of the R.O.C. had entered the foreign exchange market to buy U.S. dollars in an attempt to boost the global competitiveness of locally-made goods, adding downward pressure on the Taiwan dollar in the process.
The New Taiwan dollar closed lower against the U.S. dollar for the eighth session in a row; U.S. currency yesterday reached a high of NT$29.800 and then dropped to NT$29.723 before rebounding. Turnover totaled US$746 million during the trading session.
After the Fed's announcement, the U.S. dollar index, which tracks U.S. dollar fluctuations against the currencies of Washington's major trading partners, rose 0.2 percent overnight at one point.
The rising U.S. dollar index led the major regional currencies, such as the Japanese yen and the South Korean won, to trend lower against the greenback, the dealers said.
The weakness of the yen and the won placed more downward pressure on the Taiwan dollar throughout the trading session, they said.